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Debt Government Program
The Chancellor of the Exchequer George Osbourne appears to be very keen on his deficit reduction programme, known to most of us as 'the cuts'. Economic political debate in the U.K. seems to have got stuck in a groove along the lines of "We'll cut the deficit" (Tories) or "We'll cut it slowly" (Labour).
So let's take them at their word and suppose for a minute that they do cut the deficit completely, all the way to zero. What then? Will that solve the nation's money worries? Would the Government debt crisis be over? No, I believe that it will be worse than it is now and this is why:
At the risk of over-simplifying things, the debt crisis is a crisis for two blindingly obvious reasons and they bear repeating. a) We owe too much money b) We don't earn enough to keep up the payments or to pay it off.