Comments by "Karl Kerr" (@karlkerr7348) on "What’s the real reason why we tax?" video.

  1. ​@GhostOnTheHalfShell Shame Rachel Reeves doesn't understand this, she must of been trained as a monetarist, being a former BoE employee 😅
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  2. ​​​ @GhostOnTheHalfShell public debt is private savings so national debt is never an issue. However, too much Private debt that commercial banks lend can be a big problem. Remember Northern Rock, it looks couldn't borrow short term money got badly burnt and had to be rescued by BoE.
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  3. Yes, it's called structural deficit financing. It's used when economy is in recession or in need of stimulation.
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  4. Taxation as you quite rightly say is used ultimately to control inflation or as economists would say Aggregate Demand. This explanation though always blows peoples minds. All governments lie saying taxes fund spending. That's a narrative that has been difficult to prove as false.
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