Monday, 13 September 2010
Letter by Ralph Musgrave in today's Northern Echo. This is one of our "thick racists" the media is always telling you about.
I FULLY support Dave Atkinson’s attack on the idea that we need endure austerity in order to reduce the national debt (HAS, Sept 9). He quoted a figure of national debt as a multiple of national income of 177 per cent in the Thirties.
It has actually been much higher than that. It was well over 200 per cent just after the Second World War and after the Napoleonic Wars, and the sky didn’t fall in – in either case.
Not only that, but it is not even necessary to expand the national debt in order to bring more stimulus (assuming inflation does not go through the roof as a result of more stimulus). Two of the world’s most all-time famous economists, Keynes and Milton Friedman, made this point (Keynes in a letter to Roosevelt in 1933).
Quite separate from the above points is the question as to how big the public sector should be.
The Tories favour a smallish public sector, and we have a democratically-elected Tory government, thus it is entitled to cut the public sector and expand the private sector.
Ralph Musgrave, Durham.
National Debt Letter by Ralph Musgrave
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