Herr Steinbrueck is correct. Having inherited a golden economic legacy handed to him a little over a decade ago, Brown has as good as bankrupted the UK. The savings ratio has collapsed as savers have been discouraged and reckless borrowing positively encouraged. Property prices trebled in a few short years before the bubble burst, and Brown ran up a budget deficit during the boom, claiming he didn’t need to set money aside for unforseen problems as he had abolished the economic cycle. “No more boom and bust” was his oft-heard cry. How hollow that now sounds.
Debt - both public and private - is out of control and Brown has no desire to exercise fiscal discipline while he has a general election to fight, in a little under 18 months or so if, and it’s a big if, he survives that long.
Closing up shop
3 years ago
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