Spud notes the Telegraph stating that there’s a magic money tree:
The well repeated line that “there is no such thing as a magic money tree” is heard almost everywhere. Even Prime Minister David Cameron has uttered this phrase.
But it’s completely untrue. If the will exists, the central bank can issue unlimited amounts of currency.
And then goes on to note that:
So why the continuing lie about the magic money tree? There is only one possible explanation. That is that its use to fund investment to meet real need, like housing, or to boost productivity by investing in infrastructure and so promote earnings growth, or to boost our green future and so provide hope,
Yes! Spud insists that the magic money tree should have been spent on real assets!
That is, he entirely misses the next couple of lines of the Telegraph piece:
So when people say there’s no such thing as a “magic money tree”, it would be far more accurate to say that there is no such thing as a “magic resources tree” or a “magic value tree”.
There certainly aren’t enough resources in existence to satisfy every demand for them. This is the problem of scarcity, and addressing it is the key thing that economics sets out to answer.
But that’s what Murph is insisting there is, a magic resources tree.