The vehemence of his claim is becoming clear

In the first they suggest that there is ‘taxpayer’s money’. I question where they place the apostrophe. And they are, anyway, wrong. They do not understand that a government with its own currency and central bank creates money for the country, and not the other way round. That’s a fundamental flaw.

Well, youse see, if government makes it then it can righteously call as much of it back as it wants. It’s the perfect justification for MOAR TAX isn’t it?

7 thoughts on “The vehemence of his claim is becoming clear”

  1. I question where they place the apostrophe.

    But muh, remember his squeals when the Sun said he believed all your money belonged to the State?

  2. The trick is that he’s using ‘money’ in a more technical sense: it’s a Government-administered medium of exchange, so in a sense it’s the Government’s money – but the value it represents is an entirely different matter, and that’s what he’s not mentioning.

    I like to think of money as a representation of labour. At the end of the day, all value comes from someone doing something. That’s not to say that labour always has value, just that any value is made up of some amount of labour.

    So my income comes from me doing stuff. I spend 5 days a week to get it. Me paying some of that income over in tax represents me spending some of my time working for the Government – much like the basis of Tax Freedom Day and so on. Or, as I prefer to think of it, this is my 2 days a week working on the lord of the manor’s fields, leaving my post-tax income as the 3 days I spend working on my own.

    This shows the problems with MMT. If the Government creates more money, they’re not creating more time for me to spend on things, they’re just changing the cash amount that represents the time I’m spending on the baron’s fields. If that amount goes up, then either I spend more time there and less time on my own, or the cash equivalent of a day’s work goes up. That is, either I lose value or there is inflation.

    He doesn’t understand that the economy in practice is all about People Doing Stuff, and that money is just a way of keeping tabs on who’s done what. That’s a fundamental flaw.

  3. Pellinor,
    Which is why He invented the Other People Doing Stuff economy (or why he will invent it soon).

    Were HM government to give us all an extra 5,000 or so a year, we can avoid the inflation trap by spending this extra money on imports only.

    We can swap newly printed Great Btitish Pounds for the rest of the world’s labour.

    I’m sure the rest of the world won’t mind.

  4. If the Government creates the money for the country, why do we need tax at all? Why not just divert some of the newly created money directly into the treasury
    If tax needs to be taken from people, then it seems to me that it’s those people who create the wealth, the Government just prints it on paper

  5. But anything given in lawful exchange becomes the private property of the recipient.

    The money ceases to be the Government’s property once the taxpayer has exchanged their labour in return for some of it.

    Otherwise one could say bread belongs to the baker because they created it, so if they take a few slices back from the customer(s) who bought it, it is not the customer’s or customers’ bread, because it was the baker who created it not the other way round.

    If a baker were to do that it would be theft; so is taxation.

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