---

Government Capital Expenditure

Deficits have two factors: spending and income. Our problem has been a failure to collect the taxes that were due and because we have a very low level of tax on the rich—we have tax concessions to the rich. If we just collected a little more tax, we could afford to spend more. Taking such an approach might move us a little in the direction of Sweden—a successful economy that has a much higher tax-take and a much higher level of public spending—and we could live in a much more civilised society.