Now complete this thought….

Phil says:
June 1 2017 at 12:35 pm
Richard, Thanks for this. It does raise a question for me though. zimbabwe must also have a money tree but things arn’t going quite so well for it. Is it down to a misdirection of the printed money?

Reply
Richard Murphy says:
June 1 2017 at 1:26 pm
A) it printed too much

B) it is riddled with corruption

C) it cannot borrow in its own currency

Why cannot it borrow in its own currency?

See point A).

15 comments on “Now complete this thought….

  1. More to the point, why are there any poor countries? As long as they have a Magic Money Tree why do they need to be poor? Why does Zimbabwe not have free healthcare and education? Why does India not have a Basic Income of £25k each?

    I’m beginning to suspect that the same people who don’t get that ‘money’ is required to be backed by creation of value are the very same people who have never produced anything of value in their lives………………

  2. Oh there IS a magic money tree. In Zimbabwe though Mugabe didn’t say the three magic words: Professor Richard Murphy.

  3. one thing i have never understood – perhaps someone can enlighten me. Per the spud – the govt has a magic money tree that can pay for everything. Then why is he always going on about MOAR tax – it’s as if the govt can’t magic up money out of thin air.

  4. “Oh there IS a magic money tree. In Zimbabwe though Mugabe didn’t say the three magic words: Professor Richard Murphy.”
    Mugabe may be corrupt/ evil/ dictator – but he’s not a moron.

  5. Can we set up a crowdfunder to send Ritchie to Zimbabwe to spread his economic advice?

  6. Moqifen, you would really have to read the Joy of Tax for the full explanation but from remarks made by the almost-prof on his blog it is about:

    first, the sense of joy you derive from paying tax and,
    secondly: paying tax helps you feel that you belong to a society.

    Candidly I am surprised that anyone has to ask.

  7. I’m beginning to suspect that the same people who don’t get that ‘money’ is required to be backed by creation of value are the very same people who have never produced anything of value in their lives………………

    That should be more than a suspicion at this point.

  8. I suppose he’s getting there.

    Last week we were told that any bank can create money, at least he’s restricting it to countries now.

    Which of course, nobody disputes.

    It’s just that it causes irreparable damage to that country’s economy for decades.

    Look at it this way, Dr Murphy’s cure for a nosebleed is a tourniquet of the neck.

  9. What have B and C got to do with it?

    B is totally irrelevant and the whole point of the MMT is that you don’t borrow money.

    So we’re left with A and funnily enough the only person in the world who knows how much is too much is R Murphy.

    Hahahahahahahaha.

  10. @ Andrew M
    Of course welfare spending is not consumption – consumption is the *result* of welfare spending.

  11. I wonder where Murphy sees all that corruption. Surely not in the Courageous state, even in Zimbabwe, so they will have no hesitation in taxing away the inflation, right? That’s his solution, yes?

    If the private sector is too corrupt to stand still and be fleeced taxed, isn’t this the neoliberal heresy of Laffer?

  12. @NeilsR: stop bringing false neoliberal logic to this argument. The reason that the MMT does not work in Zimbabwe is because the State is corrupt, I have said so. This does NOT mean that the State is or ever can be corrupt in the UK, where more Courageous State is always required. Frankly if you cannot understand this simple point, I won’t waste my time explaining further.

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