reply to post by mikejohnson2006
Preaching to the converted with me mate. Its also bleedin obvious isn't it. The best way of reducing a deficit is to increase the income of the
debtor so they can contribute more to reduce the debt. So that means increase the revenue of the government which means more tax revenue ie more
people in work This is a double edged sword in that benefits are reduced also.
I have friend who has worked in civil engineering for years. ALL the major work (multi million pound contracts) done by private companies is for
public projects. Since these have dried up hundreds of thousands of engineering jobs have gone.
A small side note : inflation. low-medium level inflation also reduces the deficit. This occurs when demand increases and as long as things are
healthy wages rise with inflation. The debt could be halved in 10 years by inflation of 4%!!!!
In the UK the government just fed the banks 75billion. It would only take 69billion to wipe clear everybody's credit card and bank loans (mortgages
excluded). This would mean less money in interest to the banks, oh shame!, more income in peoples pockets who would spend it and thus create demand.
So - Wipe clear personal debt for free with one condition : you are not allowed a credit card or loan for 5 years (this will also act as a brake on
peoples credit habit, banks will hate that - oh shame!)