Same solution applies to debt crisis and NHS

If you read this to the end, you may very quickly take the view that I am no economist. And you would be right. But watching the events unfold within the Eurozone you might also question whether those who claim to be economists are themselves capable of resolving the world’s financial, crisis.

Even they cannot agree, and I am not persuaded that the politicians have all, or any, of the answers. I am increasingly concerned that actually the world crisis is so great that it is beyond the wit of man to deal with them. Surely there comes a time when it behoves our leaders (and indeed ourselves) to admit defeat, draw a line under the sand and move on. The loss in the short-term may be outweighed by longer term stability and financial growth.

So, my economic theory goes something like this; for convenience I have called it the Campion Cancellation of Debt Hypothesis. It is best explained this way: Campion owes the editor of HospitalDr £100. But that same editor owes Campion £100 also. The accumulated debt on the balance sheet is therefore £200. Now if each agree not to repay the other then the amount of debt in circulation reduces to zero. But if the editor is owed £120 the accumulated debt amounts to £220. If that cannot be repaid then the editor gets nothing, interest forces the debt to accumulate and eventually spirals out of control. So the wise thing to do is for the editor to settle for something rather than nothing i.e. £100. Result – a debt free balance sheet.

Sure there will be winners and losers but lending money as a last resort to those who have no realistic prospect of repaying the debt is the economics of the mad house. It matters not how many noughts you put on the end (I had not heard of “Zillions” before, except perhaps in the context of inflation of Zimbabwean proportions) the principle must be sound.

When a position is reached that human intervention appears unable to resolve, the answer is to stop and start again. Continuation of economic and political interventions that serve only to make things worse seem to me a model for disaster and economic failure.

But the beauty of my cancellation of debt hypothesis is that it works equally well for the constant changes to the health service as well. It works for any situation that appears incapable of being resolved. Stop – and start again! Nobel Prize nominations can be sent to me c/o HospitalDr!

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2 Responses to “Same solution applies to debt crisis and NHS”

  1. DC says:

    About that £500 I owe you……………………..

  2. Stephen says:

    Forget it. Keep it to spend on a new washing machine and thereby support economic growth! I knew I would never see the £500 again; something about boom and bust comes to mind!

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