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Step back a bit though and you might be entitled to wonder whether all this hysteria over borrowing levels is really warranted. Take, for instance, this graph (courtesy of The Guardian), which shows Britain’s net debt as a percentage of GDP compared to other major countries
This graph shows that the UK's debt as part of GDP compares very favorably with US, France, Germany, and much better than Italy and Japan.
So are the Tories saying we need to be at the level of China? And that raises interesting questions as what economic life in that space would be like.
Its a good thing that Cameron has since retreated on this radical neo-conservative stance on debt. Lets be frank, the banking collapse of 2008 was almost on the scale and nature of 1929. Both busts happened in a United States economy drunk on easy profits in investment. The primary difference this time around was the speed of global government intervention, and the outcome of the recession has been so mild compared even to earlier recession in the UK that some politicians are able to tell the public that there was no crisis at all, or just to concentrate on the cure.