We are now constantly hearing there is a need to stimulate growth if our stagnating economy is to be revived.
What exactly are those calling for growth stimulation actually saying?
They are saying there needs to be more spending to boost the economy, but how is that to be achieved?
Some are calling for a reduction in VAT for example, which will only serve to reduce the tax collected by the Government, at a time when the government is borrowing even more to finance the increases in spending. Since April, 2011 the government has borrowed another £53bn.
If it were not for government borrowing and the huge sums being paid out in various benefits, which helps to maintain the present level of consumer spending, the economy would be in even greater dire straits.
The alternative would be that companies, businesses and private individuals take on even more debt, to bring more spending power into the economy.
Does anything strike you as odd about that?
Either way the only answer is more debt no matter how the problem is approached.
The fact is Britain’s economy is debt based. New debt being how the economy is financed and there lies the problem.
It was excessive debt that brought us to where we are today and you cannot overcome a debt problem by paying old debts with new debt.
Until changes are made which would bring debt free money into the economy to provide a solid foundation, the current problems are not going to go away.
How long must it be before the Politicians get real and wake up to reality?