The Peace Party was really concerned to learn this week (12th May, 2020) of what a Facebook contributor to the “MMT for the British People” Account referred to as “some of the most dangerous and backward thinking on U.K. government finances” he had ever read.
There were three points in an FT article which caused his eyebrows to be raised sky high:
- The suggested massive raising of government taxes in the coming months to deal with an estimated £337,000,000,000 deficit in the wake of the coronavirus pandemic,
- The setting out of a proposed package of tax rises and spending cuts which would have to be implemented in order to “enhance credibility and boost investor confidence”.
- A severe warning that the UK could face a “sovereign debt crisis” unless the economy recovers quickly.
Commented the Facebook contributor, “Gratuitous, totally unnecessary austerity planned for UK (again).. This will keep happening until citizens learn #MMT“.
(A comment with which the Peace Party totally concurs. Taxes do not provide income – spending comes from the UK’s sovereign currency-issuing authority. A “deficit” simply represents the amount of money issued – it is not a “debt” that has to be repaid [to the Government itself!]. “Cuts” in spending are unnecessary for a currency-issuing authority.)