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It’s great, innit?

MMT says print to spend, tax is what limits the resultant inflation.

At the risk of sounding like a tired record, we do not need high-interest rates, tax increases and austerity coupled with low pay increases.

But when the inflation arrives don’t you dare raise taxes!

Also, of course, he spent the decade of low inflation screaming for higher taxes.


8 thoughts on “It’s great, innit?”

  1. Bloke in North Dorset

    Dog bites man.

    As Keynesians were always too busy to fix the roof when the sun shone this should come as no surprise.

  2. So we need:

    – Low interest rates
    – Tax cuts
    – increased government expenditure
    – General pay rises unrelated to productivity

    Like Tim the second of these is intriguing. Seldom we see him calling for cuts in tax.

    Apparently the government also needs to issue more bonds and the new generation is all Left wing.

    Sadly it looks like 2023 will not yet see the peak of his bullshit…

  3. He was pro tax increases until a Conservative government increased taxes. But a schill is a schill and he knows what and who to disagree with.

  4. As any fule no, arguing with Spud is like fighting a blancmange.

    He is still in favour of tax rises for the ‘wealthy’ because equality.

  5. You might say that according to him all taxation is certainly theft, because governments don;t need tax if they can create as much money as they like.

  6. @VP – “General pay rises unrelated to productivity”

    Indeed. My own pay rose c25% this year because (i) I worked 45-50 hours a week, (ii) fees issued by the tax department rose c40% compared to 2021 and (iii) overall, my firm’s turnover & profit grew around 20% at least in part because of (i) and (ii).

    If (iii) hadn’t happened, the firm could not have afforded to give me that pay rise, as indeed happened in 2021 when I had a small pay cut compared to 2020.

    The idea that you can ‘deserve’ a pay rise ‘because inflation’ is reserved for the public sector.

    HMRC – being the public sector I deal with – is a shambles. Their ‘agent only’ phone line which is a dedicated line for accountants with queries on clients was, before the lock downs, pretty efficient with calls answered quickly and usually by more experienced staff who could actually help. Now it’s not uncommon for it to ring for 10 minutes before being answered. And they’ve announced that in January it will be for ‘complex queries only’ whateverthefuck that means. And the calls now start with a recorded message warning callers that ‘abuse of any kind will not be tolerated’. Tossers.

  7. Does MMMT (Modern Motherfucking Monetary Theory) say just index inflation away?

    《– Low interest rates
    – Tax cuts
    – increased government expenditure
    – General pay rises unrelated to productivity》

    Was there an argument against this presented?

  8. RSM

    Not on Murphy’s blog – no. I’d have thought there’s been enough ink spilled on why 3 and 4 are disastrous but 1 & 2 are open for debate

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