How the UK mortgaged its future

In the context of the forthcoming election, the fiscal deficit dominates the political discourse, writes Deutsche Bank's Paul Wharton

The oldest slogan in the Western political economy is “seisachtheia”. Roughly translated, it means “the cancellation of debts”.  Some 2,500 years since it was first used by indigent farmers, it remains a topical and emotive message. Ironically, the term owes its existence to a previous Greek financial crisis. In the context of the forthcoming election, the fiscal deficit dominates the political discourse – and with good reason. Since 1987 the UK has taken on debt at unprecedented levels. As the recent financial crisis unfolded, the private sector proved unable to sustain the absolute vol...