A country drowning in debt - How has this happened?
This is simply explained, the UK government each year runs a large budget deficit. In basic terms the government spends more money than it receives in tax, each year the government attempts to fill this gap by selling bonds to investors both at home and overseas. Gilts, as the bonds are known, have to be repaid in full with added interest.
Britain's unpaid loans make up the UK's national debt and at present the country's debt is growing rapidly at unprecedented levels. Historically, our debt burden became large after the second world war. Money was borrowed but regrettably wasn't invested wisely this meant the government wound up borrowing even more. Unfortunately when a government runs up huge debts the public ends up shouldering the burden. This year that burden is set to increase by around £170 billion.
Most are aware that the state has been wasting public money for decades. The government and it's waste of space politicians have bribed the public to vote for their parties with borrowed cash and empty promises. Public spending has created much of the problem with poor judgement leading to wanton wastage with no consequence to it's ludicrous spending - £130,000 on mineral water for meetings at one council office alone. Interest payments alone are more than is spent on defence and education.
The public are left holding the bag as the national debt is set to become a millstone round our future generations necks and they won't thank the present generation for that, and who will blame them?
Budget Deficit in the UK
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