Tuesday, July 06, 2010

The state and the economy

We are getting this "keep state spending going" vs "the danger of an economic heart attack if we keep borrowing" argument on the media all the time. ( Well its really in the latter case the danger of the restaurant we keep running up a bigger and bigger tab in refusing to serve us and letting us starve.

Of course they are arguing about slightly different things.

The keep state spending argument is about the next 10 minutes and the fact the ponzi scheme Labour created of ever increasing state debt has to be kept on the road.

The stop over spending argument is based on the fact that the ponzi scheme will collapse and the longer you leave it the worse the consequences.

( The left will try to argue that the ponzi scheme should be stopped when times are good - but since they ran a structural deficit last time things were good and ranted about evil baby eating Tories wanting to slash and burn when spending a little less was suggested I think we can ignore them. )

The snake may feel good eating its own tail - but the long term outlook just isn't so great.

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