http://business.timesonline.co.uk/tol/business/economics/article6145950.ece

In the UK, public borrowing has reached to 90 billion pounds and unemployment has reached the highest level since 1997. Net borrowing for March was 19.1 billion pounds which is the highest level of borrowing since records began in 1993. Data also shows that umeployment has gone from 177,000 to 2.1 million in the three months to Feburary. Overall public debt reached 743.6 billion pounds by the end of March which is equal to 50.9 per cent of GDP, up from 43.1 per cent at the end of March. The British Government has also been helping their own banks by bailing them out. The net dent of bailing out the banks is 41.7 percent of the GDP which has broken the Government's now defunct fiscal rule, which stated that the debt would never exceed over 40 percent of the GDP.

A public debt is the total amount of money owed by all levels of government is a country or state. The British government has increased public borrowing which does not decrease the overall spending to the same extent of raising taxes. When the government has to borrow money, they have to compete for funds with anyone else who wants to borrow. This competition will inevitably increase the interest rate. This increase in borrow money will also inevitably impact the future generations in the UK. Future generations will be laid with burden of paying the national debt off.

This is just yet another sad economic story about how the recession is impacting different countries around the world. I am fairly concerned over the fact that in an attempt to get out of the current recession the British government is increasing the public debt but it seems as if they are only worrying about the present and not looking at the long term effects of their increase of public debt. Barring any economic boom that might happen in the future, future generations will be constantly burdened by cost of paying for the public debt left behind.