Friday, January 05, 2007

ITBA 6- Mired In Debt



We finish our New Year week of vids with The Bloke lecturing us about our debt habit. He repeats BOM's calculation that the government owes much much more than it lets on.

Ignoring the commitment to pay State Pensions, government debt totals £1.7 trillion, or £70,000 for every household (see this blog).

But including State Pensions adds a jaw-dropping £7 trillion (see this blog).

No wonder The Bloke adopts such a hectoring tone. Because make no mistake, this is our fault. Our fault for allowing those egregious politicos a free hand to make wild commitments we will have to pay for.

All of our experience should tell us we can't trust them with our wallets, present or future. Surely we should have learned that by now.

We must do better.

PS In the interests of accuracy, let's confess that Tyler and The Bloke both misspoke themselves over the cost of nuclear decommissioning. We both gave a figure of £160bn as being "the latest official estimate". It is not. The latest official estimate is £72bn. However, this estimate is thought by many industry insiders to be still far too optimistic, despite having been increased from £56bn last year. During the summer Gordo reportedly briefed the Cabinet that the true figure was £90bn, and there are plenty of other much higher estimates out there. The key point for taxpayers is that it's most unlikely to be less, and we're underwriting all of it.

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