Vague_Boy Posted March 16, 2011 Share Posted March 16, 2011 Ed Balls on Newsnight tonight: "We want to halve the deficit. That's a fundamental difference between us and the Tories. If you have a mortgage you pay it off over 20 years. People understand this is too far and too fast." Sorry Ed but a mortgage is a form of debt. A deficit is when you spend more money than you bring in during the year (i.e. being overdrawn). A deficit adds to your debt, it isn't the debt itself. You can reduce your deficit without ever reducing your debt. If you keep spending more than you bring in, then every year there will be a fresh deficit. The £160 billion deficit for the financial year 2009/2010 isn't the be all and end all, it just gets added to the ongoing national debt. He then compared the deficit with a mortgage - saying it made more sense to pay it off over 25 years than 4 years. You pay off the nation debt, you reduce the annual deficit. For example, if I earn £10,000 a year and spend £12,000, I have a deficit of £2000. If I have a £100,00 mortgage at the same time, does reducing my overspend next year to £1000 (halving my deficit) affect it? No. The two are separate. I'd have expected more from a former Economic Secretary to the Treasury and current Shadow Chancellor. However, he was an economic advisor to Hamish McRuin, which could explain a great many things. Link to comment Share on other sites More sharing options...
Guest sibon Posted March 17, 2011 Share Posted March 17, 2011 Ed Balls on Newsnight tonight: "We want to halve the deficit. That's a fundamental difference between us and the Tories. If you have a mortgage you pay it off over 20 years. People understand this is too far and too fast." Sorry Ed but a mortgage is a form of debt. A deficit is when you spend more money than you bring in during the year (i.e. being overdrawn). A deficit adds to your debt, it isn't the debt itself. You can reduce your deficit without ever reducing your debt. If you keep spending more than you bring in, then every year there will be a fresh deficit. The £160 billion deficit for the financial year 2009/2010 isn't the be all and end all, it just gets added to the ongoing national debt. He then compared the deficit with a mortgage - saying it made more sense to pay it off over 25 years than 4 years. You pay off the nation debt, you reduce the annual deficit. For example, if I earn £10,000 a year and spend £12,000, I have a deficit of £2000. If I have a £100,00 mortgage at the same time, does reducing my overspend next year to £1000 (halving my deficit) affect it? No. The two are separate. I'd have expected more from a former Economic Secretary to the Treasury and current Shadow Chancellor. However, he was an economic advisor to Hamish McRuin, which could explain a great many things. Do you think that, just possibly, you are becoming a bit obsessive? Ed Balls clearly understands a lot about economics, you don't get to lecture about something at Harvard unless you know a bit. The Economist have pretty high editorial standards too. But, hey, maybe a random bloke on Sheffield Forum knows best. "Politician tries to score cheap point" might have been a better title for your thread.... Or "Osbourne and Cameron have no idea what to do about the economy either". Both titles would be more accurate than your claim. I have a debt, and a surplus by the way. I fully understand both... and maximise their benefits. Link to comment Share on other sites More sharing options...
Mecky Posted March 17, 2011 Share Posted March 17, 2011 Oh I see what you're trying to do Link to comment Share on other sites More sharing options...
andikay Posted March 17, 2011 Share Posted March 17, 2011 No point being in a debate just to see the topic removed without explanation. Link to comment Share on other sites More sharing options...
Mr Prime Posted March 17, 2011 Share Posted March 17, 2011 Vague Boy. A great title now disappear as you are getting even more boring. As if you know better than Miliband! Link to comment Share on other sites More sharing options...
OneVision Posted March 17, 2011 Share Posted March 17, 2011 I would bet that Ed Balls fully understands the difference between debt and deficit; he also knows that the average voter does not. If he told the truth he would lose some of his parties support, all he is doing is what politicians do best, lie and mislead the population. Sounds about right, wouldn't it be refreshing to hear some honest politicians for a change. Link to comment Share on other sites More sharing options...
JFKvsNixon Posted March 17, 2011 Share Posted March 17, 2011 I would bet that Ed Balls fully understands the difference between debt and deficit; he also knows that the average voter does not. If he told the truth he would lose some of his parties support, all he is doing is what politicians do best, lie and mislead the population. Your right, I had an argument at work with someone who thought that the spending deficit was a lie being spread by the Conservative party to justify their spending cuts. It's these people that the Labour party are trying con, if they succeed god help us all. Link to comment Share on other sites More sharing options...
nightrider Posted March 17, 2011 Share Posted March 17, 2011 I would bet that Ed Balls fully understands the difference between debt and deficit; he also knows that the average voter does not. If he told the truth he would lose some of his parties support, all he is doing is what politicians do best, lie and mislead the population. So the choice seems to be either he is a liar or incompetent! Link to comment Share on other sites More sharing options...
Tomataheeed Posted March 17, 2011 Share Posted March 17, 2011 So the choice seems to be either he is a liar or incompetent! That's always the choice with politicians...sort of. Lets face it, they are both. Link to comment Share on other sites More sharing options...
WeX Posted March 17, 2011 Share Posted March 17, 2011 i see political hypocrisy is already being played out here. why is it when a lib dem or toryboy make a mistake, the red brigade are all over it complaining and calling them incompetent or liars, but if liebore do the same its the "all politicians are the same" response. yes they are all the same, but that doesn't mean you don't call them on their mistakes and show them for what they are. Link to comment Share on other sites More sharing options...
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