Labour General election 2015I think in the recent debate Miliband gave the game away when he refused to accept that Labour had borrowed too much money before the financial crisis hit in 2008.
There is an old economic mantra:-
- Economy growing - run a surplus
- Economy in recession - run a deficit
As you can see from the chart Labour were borrowing when the economy was growing so when the recession came the deficit was massive! Miliband's failure to recognise to concede they had borrowed too much makes him simply unqualified to run the country. No lessons learned Labour will borrow more then the conservatives.
However lets not get too partisan, if the economy continues to grow the deficit will reduce simply because the tax take will go up every year. The danger is the effect that a future recession will have, then the UK will have to cut spending and cut it fast.
Like the Conservatives they are not telling you the bad news, Miliband has said there will have to be hard choices like taking benefits away from rich pensioners and increasing the top rate of tax to 50p. However this doesn't raise hardly anything a £90billion defiect and these two measures raise hundreds of millions. Lets be optimistic and say it was £300 million, How much of a percentage is that of £90 billion!
Labour has always been the party that believes in a large state with large taxes, Miliband will tax everyone!