The question of how it can be paid for doesn’t arise if we understand how the government spends. It would be paid for in the same way the government always pays for things; by creating the money out of nowhere. A simple transfer with a few computer keystrokes authorised by the Treasury and carried out by the Central Bank. We need to knock on the head the idea that a portion of our tax is being collected somewhere in a savings pot to be divvied out at retirement or indeed that taxes serve to pay for public services....The Gower Initiative for Modern Money Studies
The deceitful image of money scarcity has no place in our society.
See also
Why is the left so hung up about modern monetary theory?
Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum
2 comments:
The US and most other countries have TWO monetary sovereigns:
1) The Treasury which creates fiat at least purportedly for the general welfare.
2) The Central Bank which creates fiat for the private welfare of the banks and the rich.
Then the difficulties with needless austerity have their roots in this:
“No one can serve two masters; for either he will hate the one and love the other, or he will be devoted to one and despise the other. You cannot serve God and wealth. Matthew 6:24
" if we understand how the government spends. It would be paid for in the same way the government always pays for things; by creating the money out of nowhere. "
Thats not what is taught in the Finance and Accounting disciplines in STEM...
You guys Liberal Art training is inadequate to do what you are trying to do...
You cant keep trying to explain this stuff using figurative language like this and keep expecting its going to work...
Its not working... figure it out...
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