"Britain, a leader in the management of government finances, has maintained a national debt without default for more than three centuries. The ratio of debt to GDP has often been far higher than it is today."
Unfortunately the article focuses on GDP to the exclusion of Tax receipts. It is striking that, as he says, the debt to GDP ratio at one point fell from 260% to 24%. It is somewhat ominous that it took a century to achieve this fall!
If Tax receipts can be increased to match spending and then exceed spending, the National Debt can be paid down and money can be also used to further boost the economy.
Next week I'll give some crazy ideas for increasing Tax receipts…
Do post your own ideas or feedback on my crazy ideas in the comments below each post.
As I wrote last week, I am making my 100 crazy ideas freely available. It seems unjust to propose ideas to fix the economy and then prevent people from freely reading those ideas. I will publish the full series once complete but this blog will remain.
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(CI003A; Royal Economic Society; http://www.res.org.uk/view/article5jan12Correspondence.html)