Dangerous statement given the source

Not understanding money and government finances should be a disqualification from offering economic commentary

So, is it ignorance that is the disqualification? Or not agreeing with Ritchie?

So The Guardian is employing a commentator who does not understand that governments have to spend before they can tax, or the money to be taxed does not exist.

And who does not understand as a result that the spending pays for the tax.

Or that there is such a thing as a fiscal multiplier, and that it is very large in the case of the NHS, meaning that this spend may well recover more tax than it costs.

It’s a dangerous thing for Ritchie to say, certainly. Really, the fiscal multiplier on health care spending is such that it fully recovers he revenue? Sirsly?

And should be a disqualification from commenting on economics. But apparently isn’t.

Hmm….

13 comments on “Dangerous statement given the source

  1. Once again, Ritchie goes full Roderick Spode and proudly puts his totalitarianism on display. What a godawful toothache of a man he is.

  2. “…governments have to spend before they can tax…”
    Eh!? Wasn’t a problem when gold was a form of currency. Usually it’s the other way around. Tax and then spend. MMT thinking I guess.

  3. Not understanding money and government finances should be a disqualification from offering economic commentary

    Is this a cry for help?

  4. I’m sure he’d male being a ‘professor’ one of the criteria
    Just more give me work stuff dressed up in no-platforming rhetoric

  5. there is such a thing as a fiscal multiplier, and that it is very large in the case of the NHS, meaning that this spend may well recover more tax than it costs

    I confess I find it hard to believe that he really believes this stuff. Maybe his whole career is just bizarre performance art?

  6. Maybe his whole career is just bizarre performance art?

    Wow – that would be Godfrey Elfwick level trolling, although without the wit.

  7. Diogenes

    If you mean credit creation and expansion of money supply then he admits it happens and is prepared to accept a it happens only under licence from the Courageous State. If, however, you mean free banking, cryptocurrencies etc then he is rather like the apes on hearing Taylor speak: it is impossible for it to happen, can’t happen, doesn’t ever happen. To suggest it does is evidence of your stupidity. So we must destroy it when it happens… because it is impossible and can’t happen.

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