Comments by "" (@blackbulldog4897) on "Rachel Reeves’ Budget is falling apart" video.

Tax the rich (if you can) by all means but not because it will govt more £s to spend - it won't.
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The UK govt doesn't need to raise revenue to be able to spend, it's the currency issuer. Every time it spends it issues new £s into existence. Taxes exist for multiple reasons, primarily freeing up resources for govt to use and driving demand for the currency; revenue raising isn't one of those functions.
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@physiocrat7143 my point is every now and again someone who doesn't know what they are talking about will glibly roll out the "printing money causes inflation" line.
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@physiocrat7143 I'm telling you because you glibly rolled out the "printing money causes inflation" nonsense. That's analogous to saying "all money creation is inflationary" which, of course, is nonsense. It's more accurate to say"all money creation is potentially inflationary ". You seem unaware that all govt injected £s (except those which are saved) are withdrawn via taxation.
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@physiocrat7143 Yes, taxation is poorly understood isn't it. I'm coming from what is often called the MMT perspective, I prefer to call it the fact based economics perspective in which the primary purpose of taxation is to free up resources for govt to use (plus drive demand for the currency etc.) The problem with taxation as it stands is it's more of a carpet bombing operation than a surgical intervention. As far as the value of sterling goes, the BofE is targeted to achieve 2% inflation annually so if the BofE hits it's target (which it hardly ever does, I wonder why 🤔) then it's bound to devalue isn't it. What ideas do you have for changing the tax system
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@physiocrat7143 I've seen some people of an MMT persuasion posit a LVT may be acceptable but generally it's rejected by MMT folk, particularly in the UK. It's rejected because the point of taxation in the MMT paradigm is to free up resources for govt to use, govt doesn't have much need for land so why tax it? Agree with stamp duty, vat, cgt, it etc. if they don't free up resources, then why bother?
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@physiocrat7143 I get it, LVT people are often evangelical (as, I suppose, MMT folk can be too). Sure, if a public project needs land then govt has the tools to be able to acquire it when it needs to. Well, taxation above and beyond that necessary for govt to provision itself is a very bad idea but, as I said before, taxation is more carpet bombing than surgical intervention so that's one of the reasons the Job Guarantee is core to MMT. The descriptive portion of MMT is descriptive, for sure. Don't forget the rest of it though 👍
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@theolddog5129 the impact of not balancing govt spending with taxation is the ability of the private sector to save.
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@theolddog5129 I'll take one thing at a time: . It really isn't any more than that. For example, govt buys something for £100 today that £100 circulates around the economy, I save £10, the rest is spent and returns to the issuer via taxation So, govt spent £100, I saved £10 of it £90 was returned via taxation; net effect is govt deficit increases by £10. . External lending for what? The UK govt only ever "borrows" from it's own bank, there's no dramas there. . Why would the fx rate or inflation rate fluctuate based purely on the amount of net financial assets (savings) in the private sector?
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@physiocrat7143 Gotta wheel out that old chestnut every now and again.
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@m0rtifiedpenguin not necessarily, the money supply is endogenous.
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@theolddog5129 Tax revenue (from the old Latin/French 'returned') doesn't allow additional people to be employed. Taxation is the drain (the return) of previously issued £s.
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@theolddog5129 You seem to be labouring under the misapprehension that "taxpayers" somehow create £s which then fund the govt; this is not the reality of the situation, govt funds us, we don't fund govt. Taxes drain previously issued £s, they create the space for govt to spend into.
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@Darren-g6f what do you mean, growth in what?
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@Darren-g6f oh right, I understand you. Yeah, most people couldn't give a fig about GDP, could they? It's a meaningless metric to most people.
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@martinaston1715 Taxpayers don't fund government, government funds taxpayers. We have a currency issuing govt with it's own fiat floating currency; that means it's self financing.
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@JohnPark-xf2gq the reality is the UK neither has nor doesn't have £s, it issues them into existence every time it needs them. you will have to explain how our currency issuing govt (the only entity legally allowed to issue the currency) will have more £s to spend by taxing the rich...
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