Second, there is no reason for £20 billion to equate to 3p on income tax. The country desperately needs a bigger deficit to stimulate appropriate economic activity to mend all the broken parts of the country that the Tories have made their legacy. Running a deficit will be exactly the right thing for Labour to do,
We have inflation. Standard Keyneszioan models suggest that the deficit is therefore too large. Too much stimulus to the economy. MMT models insist that when inflation arises you must increaes taxes – to collect back the excessive money supply causing the inflation. Which does, as all will note, have the effect of reducing the deficit.#
Spud wants to spend more money. Therefore a deficit at a time of high inflation is the things to do. Despite Spud flitting between Keynes and MMT in his descriptions of how the world really works.
Macroeconomics seems not to suit solanums.
Yesterday lunchtime he was denying that MMT demands taxes to rein in inflation.
MMT says you can do one of 3 things:
-adjusting the exchange rate (?)
-selective tax increases
-cutting taxes on those penalised by inflation
I was surprised he stopped there at the possibilities.
I enjoyed this one:
Starting a tweet with an inherently wrong claim is not clever.
Has a Murphy Tweet ever contained a correct claim?
And third, there is no national debt.
Channelling the Joseph Goebbels approach to fact telling.
with most of those additional people also paying tax on it, whilst some of them will eventually save – which is where the additional funds despised with the government come from.
His hatred knows no bounds now
Nor is there any clue that this planned level of spending is far too small. For example, the spending required to stop water pollution is in my estimate £26 billion a year (more to come on this soon). The list of issues not covered by green investment and the Northern Powerhouse is almost endless
Moar tax, moar money – and at the same time he needs a seat in the House of Lords….
If, as Paul Johnson’s involvement would suggest, it is neoliberal debt paranoia, then it is just a demand that Broken Britain stay broken.
If you think the IFS is ‘neoliberal’ then your connection with reality is tenuous to non- existent.
My guess is he would say that MMT does allow his interpretation because of various reasons. None of them amount to anything more than utter garbage.
Doesn’t the UK already run a budget deficit? According to this they do:
https://obr.uk/forecasts-in-depth/brief-guides-and-explainers/public-finances/
Fuck me, government spending is 46% of national income. Jeepers.
“ For example, the spending required to stop water pollution is in my estimate £26 billion a year (more to come on this soon). “
Let me guess, he’s going to propose a Brown New Deal?
Murphy’s solution to any and all economic problems always boils down to tax people more so government can spend more.
V_P I believe most tweets of the Spud start with a verifiable statement that’s generally true ( for given value of, etc…).
It is the second sentence and beyond where he goes off the rails, without fail.
“Murphy’s solution to any and all economic problems always boils down to tax people more so government can spend more.”
Not always. Sometimes he says that the State can print and spend as much money as it likes……..then he remembers he’s a vindictive little c*nt and demands someone be taxed anyway.
Ah so the polymath of Ely has turned his attention to water sewerage and he alone is smart enough to find the solution, over a weekend, for no cost or trade off, that has eluded many who have worked in the industry for years.
I’ve predicted his report. Spoiler alert…
1, problem caused by thatcher
2, problem perpetauted by conservatives
3, conservatives are fascists
4, Bank of England are fascists
5, more money
6, install labour government
7, appoint me Lord potato of Ely to solve problem
8, raise money by (copy and paste from every other report here)
9, print money
10, flushing toilets to be made illegal
11, this will all pay for itself by the magic spud multiplier
12, anyone who disagrees is a racist fascist
Dennis, Pointing Out The Obvious said:
“Murphy’s solution to any and all economic problems always boils down to tax people more so government can spend more.”
I don’t think he even needs the second part any more; higher tax has become an end in itself for him.