Debt & Deficit: Ignorance @ No. 10

"What price an Eton education now, mi old pal?" Arturo asked rather too gleefully, I thought. He gestured at a nearby laptop screen. It was 'The Green Benches' blog written by Dr Eoin Clarke. The particular blog post had the headline:

UK Statistics boss slams David Cameron's lies on the National Debt

'Lies'! I don't know whether that was the correct description of the Prime Minister's words. I rather think, as did Arturo, that it was just plain, old-fashioned ignorance! You must decide for yourself which is more apt. Of course, there is also the possibility that it might just be plain old politics!

So how did all this come about, you may ask? Well, Rowena Mason, Political Correspondent, of the Telegraph gave the basic details in an article headed:

David Cameron given a lecture on 'debt' and 'deficit' by top statistics official: David Cameron has been taught the difference between "debt" and "deficit" by Britain's top statistics official, after he was accused of confusing the two economic terms.

It seems that the circumstances were as follows:

The Prime Minister was issued with the explanation by the UK Statistics Authority, after he claimed in a Conservative Party political broadcast that "we are paying down Britain’s debts.”

Oh Dear! After all that expensive education! How the Eton masters must be holding their heads in despair! Won't do the recruitment figures much good, will it? They must be praying that the Eton educated 'Georgy' Osborne, Chancellor of the Exchequer, does know how many pennies make a pound!

Besides the issue of definitions! What about the syntax? 'paying down' is not the sort of phraseology that my old English teacher would have countenanced! What do you think? Do you 'pay down' your debts? I just 'pay' my debts! Possibly, I am missing some fine innuendo here - is there some poetic meaning in 'paying down'?

Rowena Mason went on to elucidate the issue, in her article:

The definitions:

Public sector net debt

A measure of how much the UK public sector owes at a given time.

Public sector net borrowing

The difference between total accrued receipts and total accrued (current and capital) expenditure over a specified period; this measure is frequently used by commentators to summarise the extent of any public sector ‘deficit’

http://www.telegraph.co.uk/news/politics/9842553/David-Cameron-given-a-lecture-on-debt-and-deficit-by-top-statistics-official.html

Now that is clear enough isn't it? Perhaps, however, you might like to read the whole letter that Andrew Dilnot, Chairman of the UK Statistics Authority, wrote to Rachel Reeves, Shadow Chief Secretary to the Treasury. She had asked him to:

"bring some clarity to the situation and advise on how we can ensure that in the future debate on the national debt is accurate and based on the facts".

http://www.telegraph.co.uk/news/politics/9842553/David-Cameron-given-a-lecture-on-debt-and-deficit-by-top-statistics-official.html

The whole letter can be found at:

http://www.scribd.com/doc/123331735/Dilnot-to-Reeves

In relation to 'Boy David' Cameron's statement that "we are paying down Britain’s debts”, it is worth noting the following graph in the Annex to Mr Dilnot's letter:

:

http://www.scribd.com/doc/123331735/Dilnot-to-Reeves

Oh dear! It seems that the idea of 'paying DOWN' has gone somewhat awry! In the circumstances, I do rather like the final line in Mr Dilnot's letter:

I am copying this to the Prime Minister’s Chief of Staff at 10 Downing Street

A delicate touch, don't you think? Certainly it kept old Arturo cheerful for a whole day! He's been pawing his way through various Dictionaries of Economics with evident gusto!

As for me, I've been scouring round the upstairs kitchen whilst the PM is away in Africa. Came across several dainty morsels of discarded pizza. I hope they're more recent than the rowdy pizza-fest at Davos! Anyway, Arturo and I are going to eat them tonight!

Bye