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Lokhi BANERJI's avatar

What a terrific piece of writing! Thank you for this...

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Graham Hewitt's avatar

The choice between increasing defence spending by raising taxes rather than raising taxes for spending on social programs is a) a false dichotomy and b) economically illiterate. Taxes do not pay for spending. Government spending comes first and some of that spending is taxed back to prevent inflation.

Government, as the currency issuer, can create whatever funding is required to pay for defence and/or pay for social programs. (Within limits of course). Nonsense such as fiscal rules are political decisions, as are decisions to cut public spending “because of debt, or because the “deficit is too great”. They are not economic imperatives. The austerity pursued by the Tories and now by LINO is a purely political decision. The neoliberal paradigm of enriching the wealthy and impoverishing the rest of us is pure politics, supported by plausible stories about trickle down economics, or there is no government money only taxpayers’ money, or we can’t max out the credit card and live beyond our means. The household analogy for State finances is pernicious propaganda to keep the plebs in their place.

Wise up. Read Stephanie Kelton’s books and spread the message instead of repeating the lies that keep people in poverty while the elite few get ever richer.

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