The coronavirus pandemic is of course primarily a social crisis, but the fiscal costs are also important. A sharp and sustained deterioration in the public finances could have major implications for future government spending and taxation. Many are already asking 'how will we pay for all this?' and worried about the prospect of 'Austerity 2.0'. … Continue reading How will we pay for all this?
Tag: public debt
The coronavirus job retention scheme is the biggest step the Chancellor has taken so far, both in terms of its nature (subsidising the wages of millions of private sector worker) and cost (potentially many tens of billions of pounds). This raises three questions. Is this degree of state intervention justified? What more is needed? And … Continue reading ‘Intervention is essential, but does not signal a socialist state’
I’m seeing lots of variations on ‘how can the Tories criticise Labour’s borrowing plans when debt has risen by £800 billion under their watch?’. But while there may indeed be good reasons to criticise the Conservatives' track record on fiscal policy, the increase in public debt is not one of them. It might help to … Continue reading Does the increase in public debt mean that ‘Tory austerity’ failed?