Obviously, for every surplus there is a deficit, and printing money can devalue it but what governments should have is a series of checks and balances.
My estimation of what has happened (and I'm happy to learn more) is that sadly, although the whole world went into shock over the banking crisis it was not the banks who reorganised themselves, much of the money that came their way seems to have been swallowed up by salaries. It was the people that paid. Banks merged and cut back on people but the do not seem to have developed and invested. An example of this is that many of them still have systems based on old IT which is very precarious.
At the same time that any money the government could reasonably print (quantitative easing) was not being invested in growth, money was also being pulled out of the system by government in an attempt to pay off that debt. This could not work because the double whammy of government cutbacks and no investment in infrastructure (which includes education) meant the debt had to go somewhere, and that has been into huge personal debt. This could be the cause of the next crisis.
The government acted like the poor person does, the person who has nothing to fall back on. In one direction they squandered on the banks just to relieve some of the fear of what is to come and in the other they skrimped every penny. With no investment in himself or capital assets but a skimping mentality that makes only short-term risk averse to the point of hibernation decisions, the poor person gets poorer and loses more: job home, etc. Our country has been run in this way for the last ten years and we are now, like the poor man, on the precipice of personal debt.
There is one other thing I add into my calculations of which party to vote for (not person, they come and go) and that is that we are at a moment of change. The whole world is looking at how to do capitalism better and taking climate change into account. Capitalism goes in epochs. From the 40s to the eighties was one where the consensus was on invest in people and rebuild. It was far more radical than anything the Labour Party is suggesting and yet there was a consensus, not of every economist but of the vast majority. In the 80s we began to move to neo-liberalist Capitalism, which instead of relying on improvement for the vast majority we relied on phenomenal wealth for some feeding into the whole. Both systems ended in a level of failure.
Now we are looking at two parties and I worry about them both. One wants to take us back to Victorian times where individual debt v great wealth fuelled both great progress and unbelievable poverty. The other looks to the 40s where huge progress was made for many but infighting eventually destroyed progress.
I will happily tell you I will vote for Labour but constantly review that decision. I cannot, in all conscience vote for an economy run on individual debt. I believe the direction of Labour Party economics is basically right and hope that as we move into a new era we will learn from other countries.
Some people on here limit their reasoning. A person arning £80,000 a year may or may not be wealthy but they are earning choice. They will need to pay a little more to help sort things out. Wealth on the other hand makes nothing unless it is used except more individual wealth. It did not bring about the investment in huge projects that the Victorian's did; the will to use it did. So some wealth will be taxed too. I can live with this for a parliament; it is so much better than the alternative. But no one can rely on my vote next time until I see what they do this time.