
Government net debt is tiny, 7% of GDP. That ain’t any problem. Private sector debt, households and businesses is, the financial sector debt even more so. Doubt Tone has a clue.
They go on and on quoting gross debt, whinge about increasing the borrowing limit—the limit is increased occasionally to ensure there is a liquid market in government and other securities, has nothing to do with net debt.
If we look to the Tories in the UK we can see what will happen here if Tone managed a win. Cut cut cutting government expenditure so they can “pay the huge debt” but by cutting unemployment rises so tax revenue drops and the govt has to pay more in unemployment benefits. Unemployed people can spend less, naturally, than employed people so businesses start feeling the strain and the weaker ones close—again, less government revenue, more unemployment benefits.
The UK has gone into recession and I see no way out of it until the Tories and their Lib–Democrat allies are resoundingly voted out of office.