He won’t let go of that magic money tree, will he?

This is simply untrue. We are doing £60 billion of QE this year. It’s the wrong sort of QE. If People’s or Green QE was done instead all the funding required would be available, and there is substantial evidence that this pays for itself if invested into infrastructure by so boosting economic activity that tax can be recovered from the additional output generated to very rapidly cover the borrowing. It is dogma alone in that case that will prevent the investment in infrastructure this country so desperately needs.

19 thoughts on “He won’t let go of that magic money tree, will he?”

  1. Nicola Sturgeon believes this too. Asked how her plans would be funded in an Independent Scotland, she answered that she would end TORY AUSTERITY, thereby stimulating the economy, thereby increasing the tax take. And not one of the assembled journalists thought of following up with “You mean, it’s because the government aren’t spending enough money that they’re running out of money? If they spend more taxpayers’ money, they’ll have more taxpayers’ money left over?”

  2. I don’t know how many times I heard demented lefties try to tell me that the government would lose money by firing state employees because those employees would not longer be paying income tax. One of them was an Open University lecturer, too.

  3. Fact of the matter is that some things the government does provide more value than they spend. Some things don’t. In an ideal world, we’d like them to do more of the former and less of the latter (some of the latter is no doubt necessary: justice, prisons, etc).

    So we have two things to look at. (i) is all of the stuff that the government is currently spending on going to be producing more value that it costs (or be necessary for other reaons)?

    (ii) Can the government successfully identify new areas to spend money on that will generate significantly more growth in the economy than they spend?

    Personally I think the answer to both is no, hence we should not let them spend more.

  4. @timnewman if you think that’s bad (and you are correct) try having a discussion about whether the public sector pays for their pensions or not.,,,

    The argument is, and I’m not making this up, “I pay something, so therefore I’ve paid for it”.

  5. I see the PCS have a report out opposing HMRC job cuts which was written by the Tax Justice Network and not Ritchie who has previously written reports for them.


    I wonder if Ritchie has fallen out with the PCS or if even they think he is crazy.

    In fact, Ritchie doesn’t seem to be writing reports for any of the unions or fake charities these days. Has he fallen out with them all or do they just not pay enough?

  6. Given tax has deadweight, isn’t the best way to stimulate the economy to tax as little as practically possible? You recover the deadweight loss then, and compound that deadweight recovery with growth.


  7. It all sounds so simple.

    Unfortunately for Great Public Intellectuals, the electorate, or the bit of it that votes, contains a very large number of ordinaries who lack the education, knowledge and insight to see what is so obviously in front of their suburban noses.

    This dim army of Strictly fans and Take That enthusiasts, are entirely unable to think beyond the tedious and everyday.

    “It’s too good to be true”, one of them will mumble, based on nothing more than dreary habit and long experience. And the sheeple nod along.


  8. I suspect Murphy’s falling out with Corbyn has led to his falling out with those unions that support Corbyn, which is most of them.

  9. Bloke in North Dorset


    “Asked how her plans would be funded in an Independent Scotland, she answered that she would end TORY AUSTERITY, thereby stimulating the economy, thereby increasing the tax take. ”

    The Tory party exists to be in power, it has no other ideology and for all their faults they aren’t stupid. If ending what is laughing called austerity and turning on the fire hoses meant that they would guarantee bring in office forever they would be be falling overthemselves to implement it.

  10. @BiND

    I agree. It seems to me that if there is a fundamental difference between left and right it is that the right look at problems and try and work out the solution whereas the left arrive with their solutions and impose them on whatever problems there are or even where there isn’t a problem.

  11. Andrew C

    You have it right. Fell out with UNISON or one of the ‘brother’ organisations and has been marginalised. Apparently him and Mcdonnell also do not see eye to eye at all. Hence the more desperate ‘gissa job’ aspect of many more recent blog entries. Will his next book perhaps echo Orwell ‘The road to Peterborough’?

  12. We don’t really have a right/left anymore though, do we?

    We have the official statists and the unofficial statists. Different at the margins, but same concept. The tories were in coalition with the lid-dems after all.

  13. And the fewer the real differences, the more vicious the arguments.

    Top rate of tax should have stayed at 50% = Good
    Agree with the reduction to 45% = Literally worse than Hitler

  14. Murphy fell out with everyone? Astonished.

    What is this infrastructure they want to spend £60bn on and which will reap huge investment rewards? Take a look around the UK at the moment – is there a major infrastructure project the Left isn’t currently campaigning against?

  15. If government wanted to spend money to generate growth etc, how long would it take?
    Perhaps deciding to build a new high speed rail line. When will that filter down into loads of jobs? Or a new runway at an airport – when are we expecting the jobs and extra planes from that?
    Government can make announcements, saying they are doing this or that. But can be, and multiple times has been, the actual jobs on the ground bit can be under a different government.
    Or in the case of some of the announced plans, a few parliaments away.

  16. The Money Tree by Bank of England
    “This article explains how the majority of money in the modern economy is created by the commercial banks making loans.”
    The above is a quote: what humanities students are trained to use, you know.

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