If the government has a growing economy and modest but controlled inflation within that economy, then the expansion of its money supply is essential, and that expansion of the money supply is best delivered by the running of government deficits. Such deficits represent a shortfall of tax receipts compared to government expenditure. This policy should be preferred to increasing the scale of private sector borrowing within the economy, which is the alternative source of new money creation.
Why should Wes Streeting decide where the new money goes rather than you or me?
Because as the author points out at the beginning “The government has a growing economy”. All your economy belong to us.
“If the government has a growing economy and modest but controlled inflation within that economy, then the expansion of its money supply is essential,”
And he gets it wrong way around.
If the government has a growing economy then the expansion of its money supply is essential,and you will get a modest but controlled inflation within that economy.
I thought the the acclaimed prophet of MMT has stated that goverments spending is not paid for by taxes and secondly that there can’t be a deficit because of a shortfall of taxes because as any fule potato noes government expenditure more than pays for itself through the multiplier + anyway we’re all going to die shortly because of the climate catastrophe just around the corner, so it doesn’t matter.