Editorial: Indiscipline on money risks a global crisis

One of the most alarming political developments of recent years is the collapse of fiscal prudence on both sides of the Atlantic.

The notion that you should be careful about debt, nationally and personally, and wary of inflation and mindful of passing borrowings to younger generations has almost collapsed.

In the 1990s the political left in both the UK and America almost vied with conservative politicians to show their financial caution, to make up for the fact that left-wing politicians were still remembered for their times in power in the 1970s and were blamed for sharply rising living costs and a perceived inability to govern.

Bill Clinton then Tony Blair led the way in showing that they behaved resposibly in such matters, with President Clinton supporting welfare to work (an attempt to get people off benefits in the US) and Mr Blair having Gordon Brown as his "iron chancellor".

Debt in the 1990s was much lower on either side of the Atlantic than it is now. What happened is the Mr Clinton was replaced by a conservative president, George W Bush, who did not care about debt. And while the Blair-Brown years were followed by Tories who were excellent on financial discipline in their first six years, they were ultimately succeeded by Boris Johnson and Liz Truss who were fiscally irresponsible.

In America the Biden years have been followed by the financially spendthrift Trump second term.

Meanwhile, every attempt Sir Keir Starmer makes to show some discipline are followed by a u-turn. Now his Labour party is demanding a retreat on welfare that might blow a £5 billion hole in the national budget. Meanwhile defence needs much more. Stormont is no better. It is woefully incapable of discipline.

The chances of a major national, or even international, financial crisis rises.