12 October 2009

No to more public debt

We don’t want higher levels of public debt and we don’t want a fall in aggregate demand.

The only solution is a hard pill to swallow and is certainly not on offer from New Labour, let alone the Tories: i.e. an increase in government expenditure on capital projects funded by tax increases, not borrowing. Such an expansion in public investment would help cut unemployment while the high rates of tax on income, land, capital, inheritance, etc would help bring about greater social equality in Britain.

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