tag:blogger.com,1999:blog-6245381193993153721.post3871269300994751655..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Projections of the UK’s Interest Burden on Gilts as a Percentage of GDP: The Reality Versus the RhetoricLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6245381193993153721.post-49384523913334400512010-06-23T18:25:38.469-07:002010-06-23T18:25:38.469-07:00Addendum 2
Evgueni in Horley, yes, my mistake!
Co...Addendum 2<br /><br />Evgueni in Horley, yes, my mistake!<br />Corrected figures:<br /><br />The Office for Budget Responsibility (OBR) report projects that government debt interest will be 3.7% of GDP by 2014–15. <br /><br />However, as I pointed out above two-thirds of this debt is held domestically.<br /><br />Since 66.6% of 3.7 is 2.46, by 2014/2015 the UK government will be giving UK residents and institutions 2.46% of GDP in interest payments.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-22180149558760426412010-06-23T05:07:50.938-07:002010-06-23T05:07:50.938-07:002/3 = .6(6) and 75% is 3/4. Also 75% of 3.7 is 2.7...2/3 = .6(6) and 75% is 3/4. Also 75% of 3.7 is 2.775 which rounds up to 2.78. Does not ruin the point of course..Evgueni in Horleynoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-46883739440480720382010-06-21T01:21:15.394-07:002010-06-21T01:21:15.394-07:00Addendum
The Office for Budget Responsibility (OB...<b>Addendum</b><br /><br />The Office for Budget Responsibility (OBR) report projects that government debt interest will be 3.7% of GDP by 2014–15. <br />However, as I pointed out above two-thirds of this debt is held domestically.<br />Since 75% of 3.7 is 2.77, by 2014/2015 the UK government will be giving UK residents and institutions 2.77% of GDP in interest payments.<br /><br />This is just a flow of money back into the economy, and much of it to people saving for retirement. Looked at this way, it's hardly the burden it's made out to be. It is giving many people the savings they need for retirement and a safe financial asset, as opposed to risky private assets.<br /><br />I note that Paul Segal in the Guardian says that 80% of UK government debt is owed to the British people, although I am not sure that this is correct:<br /><br />http://www.guardian.co.uk/commentisfree/2010/jun/17/fiscal-deficit-threatLord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.com