What caused the UK to be in so much debt?

[El Cid]

Do the general public know that it wasnt Labours fault, if the Tories were in Government, it would have been just the same.

When Ken Clarke was the Chancellor, he borrowed more than Gordon Brown, it was the banks going tits up that got us into this mess.

 

http://www.theguardian.com/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data

[woodmally]

But the simple truth is that for years under labour people borrowed way too much money than they could afford. Every year there was record borrowing news at Christmas.

 

This money has to be paid back and at some point a bank somewhere says you cannot borrow any more money. At that point the individual concerned spends less to pay his or her creditors. Less goods and services are sold and people are dismissed from jobs. These people then spend less and the cycle continues. Hence we are in a recession.

 

Yes banks made silly decisions lending money to people who couldnt afford it ie Fanny Mae and I forget the other American company. But stupid people need to take credit for this as well.

 

The net result for the government is less money coming into the coffers and more going out in higher benefit bills. Hence borrowing increases.

 

So stupid people (and I include myself) who borrowed too much are to blame as well.

[-Boomer-]

Do the general public know that it wasnt Labours fault, if the Tories were in Government, it would have been just the same.

When Ken Clarke was the Chancellor, he borrowed more than Gordon Brown, it was the banks going tits up that got us into this mess.

 

http://www.theguardian.com/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data

 

Yes, they know, they just don't like to accept it

 

---------- Post added 01-05-2015 at 12:31 ----------

 

But the simple truth is that for years under labour people borrowed way too much money than they could afford. Every year there was record borrowing news at Christmas.

 

This money has to be paid back and at some point a bank somewhere says you cannot borrow any more money. At that point the individual concerned spends less to pay his or her creditors. Less goods and services are sold and people are dismissed from jobs. These people then spend less and the cycle continues. Hence we are in a recession.

 

Yes banks made silly decisions lending money to people who couldnt afford it ie Fanny Mae and I forget the other American company. But stupid people need to take credit for this as well.

 

The net result for the government is less money coming into the coffers and more going out in higher benefit bills. Hence borrowing increases.

 

So stupid people (and I include myself) who borrowed too much are to blame as well.

 

Yeas and the 18 years under the tories too, the very people who deregulated the banks in the first place causing all the gazzumping in the 1980s

 

---------- Post added 01-05-2015 at 12:33 ----------

 

Strangely, there is very little of the media coverage mentioning the national debt has doubled under the tories

[loraward]

Do the general public know that it wasnt Labours fault, if the Tories were in Government, it would have been just the same.

When Ken Clarke was the Chancellor, he borrowed more than Gordon Brown, it was the banks going tits up that got us into this mess.

 

http://www.theguardian.com/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data

 

Because governments keep spending more money than they take in taxs, this is to please a population that wants more than it can afford.

[El Cid]

But the simple truth is that for years under labour people borrowed way too much money than they could afford. Every year there was record borrowing news at Christmas.

 

 

People have and still do borrow too much, I believe the graph relates to Government borrowing, it can get confusing.

[Happ Hazzard]

Labour used to boast about how much spending in various departments had increased under the government. That alone should tell you who to blame.

[El Cid]

Labour used to boast about how much spending in various departments had increased under the government. That alone should tell you who to blame.

 

They also increase taxes, so it may not affect the debt level.

[woodmally]

People have and still do borrow too much, I believe the graph relates to Government borrowing, it can get confusing.

 

Oh yes I know the graph relates to government borrowing but the point is the government has to borrow to cover its shortfall in spending. The shortfall is because people are out of work and that was due to people spending too much.

[Anna B]

Do the general public know that it wasnt Labours fault, if the Tories were in Government, it would have been just the same.

When Ken Clarke was the Chancellor, he borrowed more than Gordon Brown, it was the banks going tits up that got us into this mess.

 

http://www.theguardian.com/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data

 

Hooray!!! So the penny has dropped at last.

 

Of course it'd much easier to believe Cameron's constantly saying 'the mess Labour left us in...' If he says it loud enough and often enough, (and he says it at every opportunity,) people will believe him and remember it as a fact, which it most certainly isn't.

 

He never mentions the debt now though does he? Yet it was so mega important in the first place. (Remember 'we don't want to burden our children with it.')

I wonder if it's because it's doubled under his tenure and now sits at £1.5 Trillion. In fact it's so big now we can never pay it off, austerity or no austerity.

[RonJeremy]

The Tories inherited an outrageous budget deficit - they are trying to sort out that deficit so they can begin to pay off the debt. Trouble is they need to be elected, and the lefties pretend that we don't need to sort out the financial mess. They pretend we don't need austerity and gullible people believe them.