That and £15 billion in extra taxes. £100 billion over 5 years to tackle the effects of climate change and protecting the environment. That’s an extra £1300 in national debt for every man, woman, and child in the UK. Tackling climate change is a laudable policy. Bankrupting the country and indebting future generations in a futile attempt to reverse it is anything but laudable. It is reckless.
The UK cannot, on its own, influence climate change. We can prepare, we can lead, we can mitigate within our borders, we can’t stop it as we don’t control the globe. There is plenty that can be done for a fraction of that money. You can spend £1 billion on reversing deforestation of the Amazon. You can change building regulations to make all future buildings zero carbon. You can invest in renewable energy technology and electric vehicle development – affordable conversion kits for all cars, vans and trucks. You can cancel HS2 and spend the cash on local public transport improvements. You can put VAT on meat to cut demand for farting cows. I could go on and on. But it doesn’t add up to £100 billion over 5 years.
This borrow and spent recklessness, wiping out every single benefit of debt reduction austerity we’ve been suffering for 10 years, makes it very difficult for me. I couldn’t stand on a doorstep and try and explain this degree of irresponsibility to a potential voter. It is almost as if we have returned to the days of making up fantasy policies justified by the knowledge that we’d never get anywhere near having the power to implement them. We can promise fairy dust powered flying carpets to solve congestion problems to get a few votes. But this is serious. We could, like in 2010, actually hold the balance of power and be held to account for failing to implement absolutely crackpot ideas. And in 2015 we were severely punished for that kind of failure.
I despair, I really do.
I have received a response to the above post. It reads:
You don’t seem to understand what the National Debt is. The Government is essentially a huge bank. On the one hand it creates the currency by spending money into the economy. On the other it takes in savings in that currency and in the process creates a so-called National Debt. So if you buy £100 of Premium bonds you are adding to the National Debt.
So its not something our children and grandchildren would ever pay off. It is their asset.
The government spends money into the economy and gets some of it back in taxes. But it can’t get back more than it has created in the first place. The difference is the deficit. That’s quite normal.
If the Government always ran a surplus then it would, in theory pay off the National Debt after a time. But a surplus takes money out of the economy. When it paid of the ND there would be none left and we would be reduced to a barter economy.
Firstly, thank you for taking the time to respond; it is appreciated. I’m not an economist, but there again neither are 99.99% of ordinary voters. So I make no apologies if I have used incorrect terminology. If you borrow £85 billion through bonds then you create a debt of £85 billion that someone someday will need to pay back. Comparing a Government with a bank doesn’t work in my opinion. This Lib Dem proposal involves borrowing £85 billion. In the absence of information to the contrary this will involve lenders – individuals, countries, banks, institutions. The asset belongs to the lenders, not to the nation. It will need to be paid back by the debtors, the nation. It is a national debt even if it isn’t The National Debt. If I am misrepresenting how £85 billion will be found to fund this policy then the fault lies with how the policy is communicated because I suspect 99.99% of voters interpret the announcement in exactly the same way as I have. If it’s too complicated to explain to 99.99% of voters then drop it because others will tell them what it means and you won’t like their explanation.
Corbyn is also using the same cost neutral argument to explain how mass nationalisation costs nothing. If I take out a loan to buy a house for £200,000 on a 100% mortgage (they did exist once), technically I have a debt for £200,000 and an asset worth £200,000. But the asset is only mine when I’ve paid off the debt. Until then the asset really belongs to the lender. And the lender will want interest so I will actually pay £400,000 for my house. If I don’t look after the house and spend more money on maintenance and repairs it might lose value so maybe I pay £400,000 for a house that then gets sold for £100,000 or falls down and it costs me more money to clear the rubble. You could also argue that since I could make do with a £100,000 flat (I do live in the North), I’ve borrowed and spent £100,000 plus interest and maintenance more than I actually needed to. I’ve gone short on essentials and worked longer hours to make those repayments when it wasn’t actually necessary. The idea that you can buy things through borrowing and it costs nothing is absolute nonsense, arguments to fool the fools. That applies to Corbyn and also to Lib Dem excesses.
I would also add that if I borrow £10,000 to plant 5,000 trees with no intention of harvesting them ever for their wood, it isn’t a realisable asset and I haven’t increased the land value. It’s just nice to look at and good for carbon capture. I don’t mind any Government promising to borrow and spend £500,000,000 to plant 250,000,000 trees, great. Just don’t pretend it won’t really cost anything.