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Austerity – Ten Tory deceptions unmasked

  1. Austerity is a political choice not an economic imperative!
  2. The UK’s debt is not unsustainably high! It was far higher throughout most of the 20th century!
  3. Managing the UK economy cannot be compared to balancing a household budget!
  4. Aiming for a long-term budget surplus is economic nonsense!
  5. The financial crisis was not caused by Labour’s spending on health and education but by uncontrolled speculation by banks across the world! 
  6. The private sector is not inherently good and the public sector is not inherently bad!  In fact, economically there is basically no difference between them.    
  7. The market doesn’t always know best!
  8. Labour is NOT bad at managing the economy.  Annual net borrowing (the deficit) ranged from     -1.6% (ie reducing the national debt) to 3.4% during the years 1997-2008 when Labour was in power until the banking crisis.  Annual borrowing was consistently higher in the Tory government years before 1997 and after 2010.
  9. The UK is not Greece!  We continue to be able to borrow money cheaply and for long periods.  Greece owes money to overseas interests; we mainly owe ourselves.  We control our own currency; they are in the Euro zone.
  10. The imbalance between exports and imports could well be the real long-term issue, but the government doesn’t talk about that!

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