1.
Well #BBCLeadersDebate was fun.
Not much changed for me apart from I now think Douglas Ross is a bigger eejit than I did before.
For me the most important question of the night was "how will we pay for it (green policies)". This is my answer to that.
Well #BBCLeadersDebate was fun.
Not much changed for me apart from I now think Douglas Ross is a bigger eejit than I did before.
For me the most important question of the night was "how will we pay for it (green policies)". This is my answer to that.
2.
Right now, it'll be difficult to pay for many of the things we need to do to fight climate change. We would need the govt in Westminster to agree to additional funding, or cut other public services. I dont believe the former is likely, and the latter would be unpopular
Right now, it'll be difficult to pay for many of the things we need to do to fight climate change. We would need the govt in Westminster to agree to additional funding, or cut other public services. I dont believe the former is likely, and the latter would be unpopular
3.
However, if the Scottish government had its own central bank, and could issue its own currency (something that can only happen with independence) then the answer becomes a hell of a lot simpler.
In that case the Scottish Govt would pay for green by.....paying for it.
However, if the Scottish government had its own central bank, and could issue its own currency (something that can only happen with independence) then the answer becomes a hell of a lot simpler.
In that case the Scottish Govt would pay for green by.....paying for it.
4.
You see, as a currency issuer, the govt would not be financially constrained. You cannot run out of the thing that you alone issue. The govt would instruct the Scottish Reserve Bank to pay for x,y, and z and the Reserve Bank would simply mark up the relevant accounts...
You see, as a currency issuer, the govt would not be financially constrained. You cannot run out of the thing that you alone issue. The govt would instruct the Scottish Reserve Bank to pay for x,y, and z and the Reserve Bank would simply mark up the relevant accounts...
5.
***WITHOUT MARKING DOWN ANOTHER***. New money would simply be created to pay for - for instance - new green infrastructure.
The only constraint on govt spending is resources. If there are people and natural resources available to do a job, then the govt can afford to do it.
***WITHOUT MARKING DOWN ANOTHER***. New money would simply be created to pay for - for instance - new green infrastructure.
The only constraint on govt spending is resources. If there are people and natural resources available to do a job, then the govt can afford to do it.
6.
The issue comes when those resources become scarce. A bidding war ensues between the govt and the private sector. Costs rise as a result which is what causes inflation.
The issue comes when those resources become scarce. A bidding war ensues between the govt and the private sector. Costs rise as a result which is what causes inflation.
7.
While resources are plenty *gestures at all the unemployment* there is no reason to not spend in deficit to utilise those resources. If they becomes scarce in future theres a whole range of tools available to control inflation - not least amongst them being tax.
While resources are plenty *gestures at all the unemployment* there is no reason to not spend in deficit to utilise those resources. If they becomes scarce in future theres a whole range of tools available to control inflation - not least amongst them being tax.
8.
If this sounds crazy, or dangerous to you (and tbh it usually does to most people at first) I would like to point out that this is how our existing system *ALREADY* works.
If this sounds crazy, or dangerous to you (and tbh it usually does to most people at first) I would like to point out that this is how our existing system *ALREADY* works.
9.
For the last 50 years our country has operated using a fiat currency. Pounds arent tied to any other currency, or a commodity. It is made up from thin air, and assertions that it is somehow scarce are a lie.
For the last 50 years our country has operated using a fiat currency. Pounds arent tied to any other currency, or a commodity. It is made up from thin air, and assertions that it is somehow scarce are a lie.
10.
Pounds are a tool of the state which exist to allow the govt to provision itself (hopefully for the public purpose). If the public purpose is green, then the govt can pay for green.
Pounds are a tool of the state which exist to allow the govt to provision itself (hopefully for the public purpose). If the public purpose is green, then the govt can pay for green.
If this information is new to you, may I suggest the amazing book The Deficit Myth by @StephanieKelton. Its US based but the mechanics are the same - the dollar is also a free floating fiat currency.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
