What is debt?
First we need to know what is debt so we can understand what the Government is talking about. To keep things simple:
A Debt is money that is owed to some person or other body such as a government, bank or business.
To be in debt is to be in a state where you owe money.
In this case we are talking about UK National Debt: This is the money over spent by our politicians, the British Government, that has built up over many years. In other words it is the running total of money owed by the UK to the private sector and other lending bodies: all of which must be paid off at sometime in the future. It could be used as a measure a Government’s mis-management of the economy.
Some bodies may wish to confuse the issue by redefining Total Debt as Government Debt minus the Governments liquid assets (ie assets that are either cash or can be turned into cash very quickly). I will be looking into this further. So for the time being I wish to keep things simple. UK National Debt is the total amount of money owed by the UK to all lending bodies. It is like our overdraft at the bank which must be paid off at some time. in the future. Where we are responsible for our overdrafts so our Government is responsible for the UK National Debt which at the time of writing stands at a massive:
One Million Eight Hundred and Sixty Eight Million Pounds
In other words
1.868 Trillion Pounds
It is increasing at a rate of £5,170 per second
This value is the equivalent to every citizen in the UK owing £30,000 or roughly speaking two years salary (I will come onto salaries later in the series)
It is our Government’s responsibility to bring down this debt or it will inevitably destroy our economy much like an unpaid overdraft will destroy a small business or indebted family. So when Politicians start giving away money remember it is not their money they are using it is borrowed money which our children, grand children and great grand children will have to pay back. Surely it is our Government’s responsibility to MANAGE our economy not plunge it into deeper debt with their give away budgets.