Friday, March 01, 2013

Making the Case for Borrowing


Last night I watched Angela Eagle struggle to explain why austerity is a bad idea and why the government borrowing more is a good idea. As a result I thought I'd put forward what I think is a good way of explaining this.

For me, the way to do this is to stick the question in their head: "Where do my wages come from?"

I suggest saying something like this:
"Our wages are not manna from heaven, instead they depend on a steady flow of customers for our employers but that's something that's at risk. The british consumer is already struggling under a burden of debt, Europe has it's own problems and while we're talking about exporting to China and India it'll be a while before it actually happens.

We've had austerity and the result is that economy is barely moving and people are struggling to make ends meet. In an ideal world we wouldn't have to do this, but right now the only way we can keep the economy moving is for the government the government to borrow more so we can stop the cuts and let the economy heal."