Nick's post was actually an article showing Tories have borrowed more on average over the last 70 years not just in the last parliament.

Also the debt growth in the past 8 years was first and foremost due to the GFC rather than fiscal mismanagement. It's continued to grow due to Tory mismanagement of the economy and damaging austerity. Using austerity in an economic depression only worsens the situation. The Tories cuts made it worse not better. The deficit has only gone back to pre-GFC levels this year and that's mainly due to increases in consumer spending funded by short term credit. Instead of cheap government borrowing and investment our economy has been built on costly and precarious private consumer credit.

On what do you base your assertions that fiscal stimulus in the shape of Labour's manifesto can't work? Genuinely interested. Debt is very cheap and People's QE also an option.

On what do you base this?

In my opinion it is the role of government to intervene in markets where inefficiencies exist to prevent market abuse and improve the outcome of those markets.

I don't think anyone on here has yet advocated a "planned" economy.

I'm pleased to hear that if no one is proposing a planned' economy. But what do you mean by 'intervene' and 'improve the outcome'.

Edited by hedgehog50 (19 May 2017 4.24pm)

Interesting post. Are you advocating a high(er) inflationary environment, is that strictly a good idea? The economy is built on short-term credit as you say, would be best to restrict credit first, and assess the impact of a high inflation scenario on the having not had one since the Tory fiscal cock up the late 80's /early 90's.

All economies are planned.

I don't think you'd get high levels of inflation if fiscal stimulus was undertaken during periods where there is underemployment and spare capacity. Especially where interest rates are virtually zero but they still aren't having the desired effect. You'd have to return to full employment before inflation kicked in. Demand pull inflation is better than cost push though, and more manageable.