The Peace Party recalls that some weeks ago, the Government appeared to have understood that it is in the position – as the Pound Sterling issuer – that it could spend in various ways to reduce, if not eliminate, the financial effects of its dealing with the coronavirus crisis.
However, on 23rd April 2020, the Guardian reported (see link to the article below) that the Government then “seeks to borrow” money.
We wonder why! Spending (keying a sum into a cell in the UK’s “spread sheet”) by any government that is a currency-issuer does NOT involve it borrowing from anyone.
“Deficit” and “Debt” for a government like that of the UK are totally unnecessary ideas (and could even be said to exist in this context to instil some sort of fear into members of the public used to thinking in terms of their own household accounts).
The Government does not make finances “deteriorate” – as described by the journalist.
And the thoughts of a few benefitting from the investment of private money at a time of an unprecedented national emergency makes one’s flesh creep.
Tax does not provide income – Government levies taxes in order that it can spend. At the end of the day, taxes are sums deleted from the nation’s “spread sheet”.
All the public should be hearing at this time are reassuring statements like, “The Government is to spend all the money that it judges is needed to maintain incomes and employment for the present and the future”.
https://www.theguardian.com/business/2020/apr/23/uk-seeks-to-borrow-225bn-to-fund-huge-surge-in-public-spending