Quote of the week from Liberty Scott:
You cannot keep borrowing to pay for consumption now in the hope you can borrow more in the future.
The post, which I recommend reading in full, is about the European Union. The line quoted has universal application for individuals, businesses and nations.
It highlights one of the flaws of Labour’s tax policy. It’s not balanced by any policy to reduce spending and will require an enormous amount of extra borrowing in the short to medium term.
Borrowing for infrastructure and other investment which will help economic growth isn’t necessarily bad. Borrowing to pay for consumption was part of what Labour did wrong in its last term and they don’t appear to have learned from that mistake.