Letter to the Editor: Do Sutton politicians never consider facts?

Sutton Guardian: Letter to the Editor: Do Sutton politicians never consider facts? Letter to the Editor: Do Sutton politicians never consider facts?

In a propaganda sheet from prospective Wallington local government candidates I read, “cutting income tax has only been possible because we have made the difficult decisions to bring public finances under control”.

Do politicians never consider the facts. We will never move forward until it is widely understood that in 2008 it was not government finances which were the problem. They stood at 52% of GDP one of the lowest of the developed nations, far lower than Germany’s. The problem was the debts of the banks at 328% of GDP which was greater than any other developed nation and wholly unsustainable. The government deeming the banks to be too big to be allowed to fail so took on their debts thereby increasing the government debt. So the crash was directly due to the bankers and their debts.

The banks were only able to create this mountain of debt because successive governments of all parties, starting with Anthony Barber in 1971, removed controls on financial institutions. We will only return to economic sanity if we introduce well thought out controls on that sector.

Michael McLoughlin;
Sandy Lane South, Wallington

 



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12:57pm Tue 22 Apr 14

GreenBrown says...

You say that the last governments finances were not the problem, but your 52% of GDP figure doesn't take into account all the MASSIVE liabilities that were hidden off the balance sheet. Although the Tories started the whole PFI thing before they left office, New Labour ran with it and essentially run up billions of pounds worth of debt that we are still paying for and will be paying back well into the future. Just because it is not included on the government books doesn't mean that it isn't government debt. They used PFI as a useful tool to make the government spending figures look better than they actually were. It was just pure deceit and clever accounting so to speak. As for bank deregulation, again the Tories did start to relax some of the rules, but it was New Labour that effectively did away with bank regulation. Prior to the late 90s it was fairly difficult to get credit as an individual for unsecured debt be it credit card of loan. A couple of years into New Labour's reign and credit was being thrown at everyone whether they could afford it or not. I think it is misleading to say that all governments are guilty, because although that is true, some governments were more guilty than others. Gordon Browns record as chancellor was built on fudging the figures, something that is still going on today. This country is still in the same mess it was in 2008 due to keeping interest rates low. When they do go up, chaos and the recession we should of had 5 or 6 years ago will hit and then we'll see just what a great legacy New Labour and this recent bunch of losers have given us.
You say that the last governments finances were not the problem, but your 52% of GDP figure doesn't take into account all the MASSIVE liabilities that were hidden off the balance sheet. Although the Tories started the whole PFI thing before they left office, New Labour ran with it and essentially run up billions of pounds worth of debt that we are still paying for and will be paying back well into the future. Just because it is not included on the government books doesn't mean that it isn't government debt. They used PFI as a useful tool to make the government spending figures look better than they actually were. It was just pure deceit and clever accounting so to speak. As for bank deregulation, again the Tories did start to relax some of the rules, but it was New Labour that effectively did away with bank regulation. Prior to the late 90s it was fairly difficult to get credit as an individual for unsecured debt be it credit card of loan. A couple of years into New Labour's reign and credit was being thrown at everyone whether they could afford it or not. I think it is misleading to say that all governments are guilty, because although that is true, some governments were more guilty than others. Gordon Browns record as chancellor was built on fudging the figures, something that is still going on today. This country is still in the same mess it was in 2008 due to keeping interest rates low. When they do go up, chaos and the recession we should of had 5 or 6 years ago will hit and then we'll see just what a great legacy New Labour and this recent bunch of losers have given us. GreenBrown
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