Evidence shows when Government debt is over 90% of GDP growth slows dramatically http://www.nber.org/digest/apr10/w15639.html
The UK official national debt keeps plenty of items such as unfunded public sector pension schemes off the books and the UK still has the 8th highest national debt at around 76% of GDP, when considering all the Governments liabilities debt could be as high as £7.9 trillion, that’s 560% of GDP http://www.taxpayersalliance.com/home/2010/10/new-tpa-research-the-real-national-debt-a-decade-of-reckless-growth.html
Libertarians are the only ones that take debt seriously, Conservatives worry about the deficit, while Socialists seem to think that we can spend forever with no consequences. However, to pay of our national debt would take decades. Even with the well shown facts that cutting taxes raises revenues a Libertarian UK would see us struggling to pay off our debt. By the end of this Government we will be paying off 60 billion pounds a year simply in debt interest payments.
As this is a libertarian blog I thought we could explore a libertarian solution to the national debt, probably the quickest and easiest solution to the problem: Default.
We all know tax is theft, forcing people to pay a percentage of their income with the threat of violence if they do not comply is nothing else. Just because some people are willing to pay tax voluntarily does not mean all are, the state is no better than a very well armed and very dangerous mugger or criminal gang.
Debt however is worse than theft, it is slavery. It is money spent on your behalf without your permission, worse still it is money spent before you are even alive, without the permission of your parents or grandparents etc that you are expected to pay back. Imagine if someone came and redid your front drive for you without you asking then told you that you had to work for the rest of your life with a percentage of your income going to them to pay for it. Then imagine that not only did they redo your drive, they did your neighbours, and his neighbours and so on, yet expect all of you to pay the whole sum, and not only were they doing your drives they were doing drives in foreign countries, paying their accountants, raising the payment of their staff that outnumber the number of householders they are taking payment for and doing all this at a faster rate than everyone in the country can pay them. Now imagine they expect your children, and their children and their children to continue to pay for it.
Government debt unlike personal debt is not voluntary, it is not a choice that you make it is forced upon you. Debt holds you as a slave. We must default on the UK debt immediately
This has both negative and positive consequences. Many companies and people who own Government bonds would lose lots of money, but this is simply their fault for expecting to profit off slavery and stolen goods. On the plus side our borrowing costs would shoot up, no future government would be able to recklessly spend in the same way as they have done in the past for quite some time,
But the best consequence of all is that no man woman or unborn child would be held to pay back the largesse and extravagance of past generations and spend happy politicians.