The Peace Party – Non-Violence,
Justice, Environment.

Funding Needs – Food for Thought

The Peace Party has noted that neither the government nor opposition parties in the UK Parliament seem to want to let the public know where the money comes from for the National Health Service – or indeed for other services for which it is responsible on our behalf. One wonders what motives lie behind this secrecy. Could it be that they are making it seem complex in order to demonstrate their power over us even though we elect them to serve us? Let’s see. For the Peace Party it looks pretty straightforward.

The money system may be seen as a linear one – from its issue to being written-off. At the start, the government issues the money needed for use in the country – for the NHS, for education, for public transport, for running the democratic process and so on. Money is not “raised” – it is simply issued.

To prevent too much inflation, money gets removed from the system by various kinds of taxation – on income, through National Insurance, through VAT, for example. The people are thereby recognising the obligations they have for the country being organised on their behalf.

Now for some of the myth-busting.

Taxes don’t pay for anything – there’s no purse or wallet into which they are put for future use.

Tax does not do any “funding”.

So, “tax-payers” do not contribute in any way to the payment for services; the money is taken out of circulation – it has done its job.

The government has no need to borrow any money – it can issue whatever is necessary.

So, the country cannot “fall into debt” – it does not owe money to anyone.

There is no such thing as “austerity”. If the government needs more money, it issues what it judges is necessary for the “common good”.

Money is not an “investment” – in the usually accepted sense – it is allocated to do good.

Money to be issued at some time in the future for perceived purposes has nothing to do with money issued to fund the NHS, etc.

Public finances cannot be “weakened” (as some observers have stated) when government issues money.