The how do you pay for it explanation that won’t be in the book

However, I share the quote for a reason. Steve rightly says:

To really answer [the question ‘How are you going to pay for it?’] you have to understand the dynamics of our monetary system—and that means you have to understand double-entry bookkeeping, because that’s the way banks and governments create money, and keep track of financial transactions.

For that reason, I am going to have to explain the double-entry of banking in the forthcoming book. But nothing like the way Steve does with a Godley model. That’s not to say they are wrong because they are not. It is because most people will not follow them, and everyone has a right to know this.

The actual explanation he won’t use.

Society has a number of resources, we can use resources to do a number of different things. Government can make the decision that we, the people, don’t get to do what we want with our resources. Instead, they are taken from us and used to do what government wants to use those resources to do.

And that’s it.

All the talk of money, taxation, debt, is a discussion of ways to do that, not the doing itself. Government takes our stuff and does stuff with it.

12 thoughts on “The how do you pay for it explanation that won’t be in the book”

  1. Given he has consistently demonstrated he has at best a shaky grasp on fundamental accounting principles. M, this should be a corker…

  2. “All the talk of money, taxation, debt, is a discussion of ways to do that, not the doing itself. Government takes our stuff and does stuff with it.”

    And all the talk of how it’s really terribly complicated and you don’t understand is an attempt to deflect attention from that simple fact.

  3. Is this his wonderful double entry system of banking that only works so long as no-one withdraws any money? The one where people borrow money just to put it into a current account with the same bank?

  4. Double entry bookkeeping is merely a technique for avoiding errors. The money and the transactions the money is used for are the same whether you use a double or single entry system, it’s just that the latter won’t pick up a lot of errors the former will. Just the same as having a check digit on your credit card helps prevent transcription errors but won’t change your credit rating.

  5. Why is he writing another book? He keeps on hysterically telling us that we’ll all be dead from Covid in a matter of weeks because the tories are evil bastards- who does he think will be alive to buy his book?

    On an unrelated note he claims to be a Quaker. I thought one of the tenets of Quakerism was to respect the opinion of others even if you don’t agree with them and believe that the light of God resides in all of us. I can’t see him practising these tenets by slagging off anyone who disagrees with him and labelling a large percentage of the population as evil.

  6. Given he has consistently demonstrated he has at best a shaky grasp on fundamental accounting principles

    HTF did he manage to qualify in the first place?

  7. “All the talk of money, taxation, debt, is a discussion of ways to do that, not the doing itself. Government takes our stuff and does stuff with it.”

    What’s changed over the past several years is that now government instead of arguing about how much they need to take to do what they think should be done, they’ve changed to arguing that they need to take it because in a fair world you wouldn’t have it to begin with.

  8. @asiaseen as with many things accounting rewards those who know how to pass the exams which is not the same as doing the job. The big practices overtrain to allow for drop out and to so that they can select who they want to keep on after qualifying

  9. Moqifen

    I must admit his screeds on the need for lockdown are really nauseating. He has managed to blend a quite odd combo of ancient socialist economics combined with nauseatingly right on ‘woke’ Defense of ‘Zero COVID’ as well as worship of Client Change advocates and Critical Race Theory adherents. You’d be hard pressed to script someone more objectionable in a work of fiction. If he quotes the ‘dictionary.com’ definition of ‘woke’ again I am hoping his ‘purity’ will lead to self combustion…

  10. Bloke in the Fourth Reich

    All of Professorus Magnus Crassus Wancerus seems to boil down to

    “People do things for money therefore print money and get more stuff done”.

    Why you still waste your time on this stuff that a four year-old could see through …

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