During an election all parties make commitments to do things which cost money. Voters expect them to put a cost against each item. Commentators then add up the costs and say that this is what each party is going to spend. This process is way too simplistic to make meaningful comparisons.
Spend v invest
If I spend £5000 on a holiday, when I get home all I have left are the memories. If I spend £5000 on a car I have both the asset of the car and the cost saving of reduced bus fares. I have ‘invested’ in the car, instead of ‘spending’ on the holiday
If a government ‘spends’ on purchasing assets, particularly those which will generate revenue, then this is investment – and a saving for the future. The assets of the nation will have increased.
Similarly, if a government sells off assets and then spends the…
View original post 300 more words