The bank bailout was £850 billion
Let's call it 85% of the deficit is due to the bank bailout.
Why did the banks need bailing out? Because of their greed and irresponsible lending.
Now, no-one is saying that the banks shouldn't have been bailed out. The cash injections prevented a worse recession. But, those self same banks are now reaping massive profits again and paying themselves huge bonuses.
To quote Johann Hari
They have just paid themselves £7bn in bonuses – much of it our money – to reward themselves for failure. That's the same sum Osborne took from the benefits of the British poor yesterday, who did nothing to cause this crash.
He's right, we didn't ask for this,but we will have to suffer. How is that fair?
The banks should be made to pay. There is a growing faction at robinhoodtax.org who have the idea to tax the financial sector just 0.05% on every transaction they make between each other. It's a tiny amount that could raise billions and puts the burden on those who deserve it.
That's a much better way of reducing the deficit.