Read on Twitter
I’m glad you’ve brought this up (again) @GregHands , as it shows one of two things.
Either you have no idea as to how the economy of a fiat currency issuer (like the UK is with the £) works or you DO know how it works & you’re lying about it to push your ideology.
Who do we want
Either you have no idea as to how the economy of a fiat currency issuer (like the UK is with the £) works or you DO know how it works & you’re lying about it to push your ideology.
Who do we want
Representing us, a person who’s an idiot when it comes to our economy, or a #gaslighting liar?
Well I would rather it was neither of those people if I’m honest, which you seem to have great trouble with!
Well I would rather it was neither of those people if I’m honest, which you seem to have great trouble with!
For anyone interested in the truth behind this, simply put, the UK CANNOT run out of the currency that it, & only it, brings into existence. It’s impossible, & has been since we came off the Gold Standard over 70 years ago.
The chief constraint on issuing a fiat currency is
The chief constraint on issuing a fiat currency is
Keeping inflation in check. It is critical that the amount of £’s in circulation in the UK economy is kept in check,which is what taxation actually does.
It DOES NOT provide a pot of money that the Govt then spends from, it is exactly the opposite - the Government spends money
It DOES NOT provide a pot of money that the Govt then spends from, it is exactly the opposite - the Government spends money
Into the UK economy & then progressively taxes it away, out of existence via income tax, National Insurance, business tax & all the other ways the Govt takes money away from us. The difference between what they have spent in & taxed back each year is called the fiscal deficit &
the aggregate of all those yearly deficits is the National Debt you keep hearing about. You can think about the debt like this - The amount of the National Debt is the Governments RED on their ‘account’. So who has the corresponding black to balance out the red in that account?
Well, we do! It’s all the money in our pockets, in our wallets & purses, in our bank accounts & our pensions & the money sitting in our, & businesses bank accounts. This is the reason the Govt can’t tax all the money back. If they did, there would be no money in the economy, no
money to carry out transactions, to do our shopping, for businesses to trade with. Sure,you can balance the yearly deficit for a year or two but you can’t balance the overall national debt.
It is important to keep the two in balance though, & not let the debt get too high.
It is important to keep the two in balance though, & not let the debt get too high.
Since taking power in 2010, the #Tories have increased the level of overall taxation to a level not seen for over 70 years.
During the same period, the level of National Debt has increased from £950B under Labour to £2.45 TRILLION.
As we’ve seen, these two should be in balance
During the same period, the level of National Debt has increased from £950B under Labour to £2.45 TRILLION.
As we’ve seen, these two should be in balance
So the question that Greg Hands & all his Tory mates really need to answer is…
Why hasn’t the massive current level of taxation reduced the yearly fiscal deficits?
How has the UK National Debt virtually tripled over their tenure of the economy?
Where has all that money gone ?
Why hasn’t the massive current level of taxation reduced the yearly fiscal deficits?
How has the UK National Debt virtually tripled over their tenure of the economy?
Where has all that money gone ?
@threadreaderapp unroll please.
Namaste!
Namaste!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
