Category Archives: deficit

Low cunning of Sweden’s Social Democrats

For some politicians, running up deficits

is not a problem but a benefit, since doing so creates a population permanently in thrall to them for the favours by which it lives. The politicians are like drug dealers, profiting from their clientèle’s dependence.

The Swedish Social Democrats

understood long ago that if more than half of the population became economically dependent on government, either directly or indirectly, no government of any party could easily change the arrangement. It was not a crude one-party system that the Social Democrats sought but a one-policy system.

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House of cards

Screen Shot 2015-05-06 at 07.45.57Britain’s fragile, debt-ridden economy

British socialists are determined to

put an end to government ‘austerity’—that is, the policy of reducing the budget deficit from 10 percent of GDP to 5 percent, which has taken seven years to accomplish.

The British

live by the grace and favour of foreign lenders content to buy the country’s bonds at low interest rates.

However, lenders’ confidence that Britain is, to a degree, a haven

could easily change. The country would then have to earn its current standard of living, which it is in poor shape to do; and a sharp decline could lead to social unrest, leading to a further collapse of confidence.