As Prime Minister How Would You Pay For Coronavirus Crisis
Published / Last Updated on 23/06/2020
If you were in charge: how would you pay off £330 billion coronavirus debt?
- Political ‘hot potato’ to increase income tax rates and national insurance contributions.
- Commercial ‘suicide’ to increase VAT, corporation tax and business rates.
- Political ‘suicide’ to cut NHS, education, social security, police spending.
Higher taxes is the only way. Paying taxes like our parents and grandparents did in the 50’s, 60’s, 70’s and 80’s to pay off war debt and 1970’s financial crisis debt.
- Higher taxes = higher wage demands = inflation.
- 5% pa compounded inflation over 10 years = 58% reduction in the real value of government debt without ever repaying it.
- 5% pa compounded inflation over 15 years = 79% reduction in the real value of government debt without ever repaying it.
- Inflation is key to the survival of all governments around the world long term. Expect economic stimulus and higher taxes to push up long term inflation.
What would you do if you were Prime Minister?
