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If you asked the P³

He would insist that crowding out never happens. Government spending does not reduce private sector such, it is not true that if government tries too much then we lose that private output or effort.


In that case MMT suggests that increased tax charges might be required for two potential reasons. One is simply to control inflation. The other is that if a government still wishes to pursue what it thinks socially desirable activity in that situation then tax can be used to reduce private sector demand in the economy so that economic capacity is made available to ensure that delivery of the government’s own objectives is possible without over-inflation of the economy resulting.

Which is, government might decide to tax more in order to prevent that crowding out that never does happen.

2 thoughts on “If you asked the P³”

  1. Off topic but questions that only the BBC can ask –

    “Why are there so few BAME players in English women’s football?”

    And we learn from the article that “there’s something like 500 players in the Premier League and a third of them are black” but that “the proportion of BAME players in the Women’s Super League is lower – at between 10-15% BAME players in the WSL.”

    So either over-represented or represented about right when you consider the proportion of the UK population from the BAME community.

    But questions that you know will never be asked:

    “Why are there so many from the BAME community in the English men’s Premier League?”

  2. Also OT but I noticed that, boxing clever, Mike Byson had an exchange with The Master on https://www.t*


    I understand how it can be expedient for a campaigner to be forceful to the extent of being perceived as unreasonable but to campaign in this style for 20 years while antagonising only one person every two years on average is a remarkable record. Well done!


    Richard Murphy says:
    February 23 2021 at 7:09 am

    I am quite sure I have antagonised a great many more outside my immediate circle

    I don’t call those failed relationships

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