UK Debt in Perspective

Abstract

National debt figures need perspective. This can come from viewing them as a ratio to national income. That ratio has surged in the last twenty years. But despite many assertions, the debt-to-income ratios of the past few years are not unprecedented. When the ratio reached such peaks in the past, much concern was expressed, but there was not a panic for immediate action. Problems may indeed follow, but they do not inevitably follow. The debt can be coped with and there need not be resort to any emergency measures. Historical investigation shows how and why: control of spending and measures to allow and, if possible, promote steady growth are sufficient. Inflation is a danger, but honest government and good sense can work.