Doodledog
Thank you.
Ok, I get the bit about needing to create a shortage of money or it would be worthless and there would be no incentive to work.
I also get the bit about money not circulating meaning that the economy suffers (as well as the people, which is why I wouldn't vote Tory if my life depended on it).
The bit I don't understand is the bit about money getting back into the economy first before the govt can get it back.
If all we need to have a fully functioning NHS and education system is money, why would the government ensure that they have less of it? What is stopping them from spending more, and (more importantly, as this is the bit I really don't understand) what is the bit in the middle? The bit where they have to stop money becoming worthless, but also stop the country becoming poor because of Austerity? Is that where taxation comes in? Or if not, what is it?
Thanks, Doodledog
If all we need to have a fully functioning NHS and education system is money, why would the government ensure that they have less of it? What is stopping them from spending more
The only answer I have for this is that the government is made up of individuals who either believe the 'household budget' myth or who would prefer that government money is directed to enterprises that increase the wealth of themselves and their donors and cronies. Like in the pandemic.
Spending on education, health etc is very good for lots of businesses in the domestic economy but it doesn't make the sort of spectacular profits for a few that some enterprises would love.
Money would become worthless if there was nothing left to spend it on. As it is, we all know that there are lots of things it could be spent on, like education, health, renewable energy, helping the disadvantaged. But if a government is ideologically opposed to doing this, they won't do it.
I keep banging on about this because I think that once people understand that government spending choices are constrained by ideology, not by a finite amount of money, voters could make more informed and better choices when it comes to choosing a government.
It's obviously much more complex than this, any economy needs careful management, but the basic premise, that taxes aren't needed to fund government spending is based on reality and gives us a whole new way of looking at things.
Austerity was a deliberate choice and made the country poorer. It was based on flawed economic theory. That 'the market' was the perfect regulator of an economy.