Who Does Britain Actually Owe £3 Trillion To?
Badly Drawn Britain
7,971 views
UK national debt explained: Britain’s national debt is not a giant household credit card. It is government borrowing, gilts, deficits, public spending and someone else’s asset.
We often talk about the national debt as if Britain has maxed out a giant credit card.
But that picture is misleading.
In this video, we explain what the UK national debt actually is, how deficits build up, who the government borrows from, what gilts are, and why one person’s debt can also be another person’s asset.
We also look at why public debt is not automatically bad, why it is not automatically harmless, and why the real question is not just “how big is the debt?” but “what did Britain get for it?”
Because borrowing to patch holes and borrowing to build the future are not the same thing.
Chapters:
0:00 The private debt recap
0:38 Why the credit card analogy is wrong
1:01 What the national debt actually is
1:18 The latest UK debt and deficit figures
2:05 Who does Britain borrow from?
2:19 Gilts explained
3:30 Why a country is not a household
4:28 When public debt can be useful
5:03 The real limits: inflation, resources and capacity
5:56 The costs of national debt
6:59 Borrowing to survive vs borrowing to invest
7:29 What did Britain get for the debt?
7:55 Who gets the money first?
8:25 The national debt as a web of promises
#NationalDebt #UKEconomy #Gilts #PublicDebt #BritishEconomy #EconomicsExplained #Deficit #GovernmentBorrowing #BankOfEngland #BadlyDrawnBritain
16 Comments
But let’s not call it debt. It’s a savings scheme that the government offers to those wanting to have a safe home for BIG money. Money that has already been spent into the economy by the government.
Always worthwhile noting that Big Money needs the government…not the other way around as it is at the moment!
And the Treasury must take back control of the BoE and should immediately drop the interest rate by 1%. The rate at present just feeds more money to the wealthy.
Who Does Britain Actually Owe £3 Trillion To?
Badly Drawn Britain
7,971 views
UK national debt explained: Britain’s national debt is not a giant household credit card. It is government borrowing, gilts, deficits, public spending and someone else’s asset.
We often talk about the national debt as if Britain has maxed out a giant credit card.
But that picture is misleading.
In this video, we explain what the UK national debt actually is, how deficits build up, who the government borrows from, what gilts are, and why one person’s debt can also be another person’s asset.
We also look at why public debt is not automatically bad, why it is not automatically harmless, and why the real question is not just “how big is the debt?” but “what did Britain get for it?”
Because borrowing to patch holes and borrowing to build the future are not the same thing.
Chapters:
0:00 The private debt recap
0:38 Why the credit card analogy is wrong
1:01 What the national debt actually is
1:18 The latest UK debt and deficit figures
2:05 Who does Britain borrow from?
2:19 Gilts explained
3:30 Why a country is not a household
4:28 When public debt can be useful
5:03 The real limits: inflation, resources and capacity
5:56 The costs of national debt
6:59 Borrowing to survive vs borrowing to invest
7:29 What did Britain get for the debt?
7:55 Who gets the money first?
8:25 The national debt as a web of promises
#NationalDebt #UKEconomy #Gilts #PublicDebt #BritishEconomy #EconomicsExplained #Deficit #GovernmentBorrowing #BankOfEngland #BadlyDrawnBritain