The biggest myth of all is that public expenditure is funded from the (private) taxpayer’s pocket. There is a growing alternative economics which shows that it is the state’s capacity to create money that underpins the market, through the authorised banking system and government spending.
OK, MMT. But the end of the letter?
The time has come to recognise the autonomy of public money and the role of the public economy in sustaining the market system. Proposals for public spending for the public good need not fear the neoliberal question: “Where is the money to come from?” We know where it comes from. It doesn’t come from magic money trees – it comes from us, as citizens.
So we, the citizenry, do pay for it then?
Prof Mary Mellor
Author of Money: Myths, Truths and Alternatives
Almost Spud-like, eh?