SciFiBoy said:
why cant we just take longer to pay it back, and raise taxes for the rich rather than taxing the poor more and cutting essentail public services?
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Three reasons.
1. The longer we have the debt, the higher the interest payments will be and the more we'll eventually have to pay back. I believe for some of our deby we're ONLY paying the interest and not paying off the debt at all.
2. The debt is making the UK's integrity and credit-worthiness bad. The pound has been on a slide partly due to the IMF calling our debt situation dangerous.
3. The debt is devaluing our currency just by existing. Since the government has had to print money to cover the debt our infation has been very high.
The sooner we pay it off the better.
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We have to tax someone to pay it back. The middle class 30k-100k are the hardest hit at the moment while the 25k and under have lifestyles more appropriate to the 50k band. We should tax the poor (and again I dispute that poor people even exist) more to restore the order and give incentive for people to work harder. We should also tax the rich by closing tax loopholes.
The other way to pay off the debt is to wait for the banks we own to regain their value in a few years and sell them off. The banks on a good day are worth more than any amount of increased taxation. But when Labour took on the banks' debts and nationalised them they refused to also take financial ownership. We have "shares", but we're not allowed to sell them (why not? we own them) and we're not allowed to get dividends. That's Labour's fault. The US DID take real shares in the banks and will get paid back when they sell them.