Monday, 19 January 2009
"The financing of current government spending by debt is equivalent to an 'eating up' of our national capital value... By financing current public outlay by debt, we are, in effect, chopping up the apple trees for firewood, thereby reducing the yield of the orchard forever.
"...The person who is faced with a tax bill to finance interest charges...will reckon only on the simply observed fact that income that he or she might otherwise use is being taken away in taxes. The result is precisely analagous to the apple orchard example introduced earlier. If the yield of three trees under a person's nominal ownership is committed to debt service, it is fully equivalent to having an orchard with three fewer trees."
James M. Buchanan - (born October 2 1919)
Nobel Prize-winning American economist and educator
So, what's your current share of Gordon Brown's debt?