tag:blogger.com,1999:blog-2277215496195926573.post1125560320931338893..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: National debt.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-47829863066851302312011-05-24T07:28:58.740-07:002011-05-24T07:28:58.740-07:00Neil, That’s an idea. Of course government would s...Neil, That’s an idea. Of course government would still have a liability: to the annuity holders. But at least the liability would not be called “National Debt”. Strikes me this is similar to the way in which government has a liability for future public sector workers’ pensions, but this is not counted as part of the national debt in 2011. And changing the name of a liability from “national debt” to something with another name is half the battle, i.e. it pacifies the twits who get worked up about the word “debt”.<br /><br />Also, neither your suggestion nor mine involve much of a free lunch. So the real fundamental question is “what arrangement makes sense”. That is why I gave some reasons above for thinking that national debts do not fundamentally make much sense.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-63969340417059044222011-05-23T23:38:44.023-07:002011-05-23T23:38:44.023-07:00Given that at least 50% of the national debt is si...Given that at least 50% of the national debt is simply gilt backing for compulsory annuities at insurance companies, you could get rid of at least 50% of the national debt by nationalising those pension payments.<br /><br />That eliminates 'debt' and simply beefs up the state pension for those people in receipt.<br /><br />The UK national debt is largely a job guarantee scheme for insurance clerks. Not quite sure why people think they deserve such a privilege while the rest have to do without. Obviously they've got a good lobbyist :)NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.com