J P Floru is a Westminster councillor and Head of Programmes at the Adam Smith Institute. Follow J P on Twitter.
“They call it austerity. I call it balancing the budget”, German Chancellor Angela Merkel said at a book launch a few days ago. The principle of living within one’s means is familiar to many of us. If we don’t live within our means, bank or bailiff will make us. Sadly, there is nobody to stop the state. Apart from a few courageous politicians, such as Angela Merkel?
Spendthrift governments caused it all. The almost pathological inability of politicians to match spending to income made them turn to the Holy Trinity of Spendthrift Government: taxing, borrowing, and printing money. The flood of cash caused the bubbles – not just in property prices, but also in the expectation that the state will care for us from cradle to grave.