Well said. It is deficit, not debt, that is the relevant figure that should be looked at. Brown took us into a deficit even before the crisis hit, which then blew up (inevitably) when the crisis (ine… (View Post)

Crises happen. The idea you can abolish crises is preposterous. Bad businesses fail and should be allowed to fail. Lehman's did a bad job and paid the price. Northern Rock should have paid the p… (View Post)

The issue is we entered the two differently. We entered the GFC from a baseline of already rising debt to GDP. We entered Covid from a baseline of falling debt to GDP. If your baseline is debt to GDP… (View Post)

The problem is that recessions are part of the economic cycle and should be accounted for in the cycle. The cycle should be debt rising during and immediately after the recession, then falling afterw… (View Post)

Yes, cliff edges affect behaviour. I've met loads more who change behaviour because of the 83% cliff edge. I've been literally spat at, more than once, because the job I was offering I woul… (View Post)