My Authors
Read all threads
For once I am not going to talk about MMT.

I am going to talk about *mainstream* neoclassical economics.

We are told Tax's fund spending, and any spending above taxation is met with borrowing, which has to be paid back by our kids. So what does this idea logically lead to?
So the premise of this, is the government is, like the rest of us, a user of the currency, and should, like the rest of us, balance its books, or even better, run a surplus.

So say the government does this - balances its books.

This means all money must be created by banks.
So...where does this lead?

you can split the population into two. Those with money, those without. Those with money do not generally need to get bank loans. Those without, usually do.

Since bank loan interest transfers wealth away, from the loan holder, this leads to...
increases in inequality:

- The economy needs increase loans to function.
- The poor carry the burden of loans
- The rich get richer, since they don't need them.
- Inequality explodes.

If you are rich, you need to keep the idea of governments having no money, to keep status quo
Governments following these ideals will strive to keep pushing more and more loans onto people - pushing down interest rates to increase property prices since more mortgages = more money in the economy to keep it going.

But, like a drug, eventually the system can't take it.
And boom- market crash. people default on loans, loose their houses.

No other way. The people who win, are the rich, who don't loose their properties, but now have the ability to acquire more.

A game of monopoly, the rich win.

This is why we are told Gov's have no money.
Reality:

It is the governments responsibility to PREVENT this from happening, not to enable it.

Anyone who pushes 'tax's fund spending ideology', utterly refusing MMT - will be doing it for a reason. To increase their wealth in relation to the poor. Thats their aim.
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Tony Weston

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!