Brian Keegan: The Tax Take
Government spending has more to do with referenda than with budget deficits
So it looks like the economists have been wrong all along. The amount a government has to spend has little enough to do with the size of the current budget deficit, or bond market yields, or the debt-to-GDP ratio. Instead it has to do with referendums and general elections. While we saw that in spades on Friday with the decision of Britain to leave the EU, we also saw the phenomenon in action earlier in the week with our own government’s summer statement. The summer statement was the government’s assessment of the state of the economy and the factors that might influence next year’s budget.
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