The Peace Party – Non-Violence
Justice, Enviroment

MENU

The Peace Party – Non-Violence
Justice, Enviroment

The Government just Spends Pounds – it does not Borrow them

The Peace Party asks, “Are you worried about the news stories of the Government borrowing billions?” (BBC, 19 February, 2021)
For some while now, Party members have found that there is a different – and far better – way of looking at the funding of UK public services than that promoted by the Government itself and an unquestioning news media.
We need to understand that the country does not operate like a household or business. The country does not “borrow” to fund services, it is never in “deficit” or “debt”, it never has “insufficient income” and it does not “sell assets” to survive. The country needs to learn that sleep should not be lost when such negative ideas trip easily off the lips of journalists or officials.
Let’s look at it all in a positive way. The Government is in charge of the Pound Sterling (not the Bank of England or its officials). It tells the Treasury to credit those public services with whatever sums are needed (to deliver what the electorate voted the Government to do).
There must be the resources to deliver those services – in terms of people to do the work and materials for them to use.
There must be taxes to remove cash from the system when the money has done its work – and to prevent inflation.
Taxes fund nothing but they do allow the Government to issue more Pounds for services to use.
(The Modern Money Graphic shows the same ideas but for the US Dollar and the States (“Federal govt” = UK Government, “Congress” = Parliament and for “Dollar” read Pound Sterling)

Please share this article

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on facebook
Share on whatsapp
Share on email