The Problem

The UK Government is in a state of panic, as they cannot balance the books, or pay for essential services. As such ordinary people suffer for the incompetence of Government.

Money is the biggest issue we all have in the world, and because of what it is, it has been restricted and made difficult to get hold of.

But, are we being told the truth, in terms of how it works? Probably not, and if we are not educating ourselves on how money works, then we open ourselves up for exploitation by those who effectively misrepresent the facts.

Understanding Public Money

Did you know that the UK Government can create and put into the economy as much money as it wants, perfectly legally through the Bank of England. This money does not relate to future tax receipts in any way, it can be fully recuperated or not dependent on the needs of the economy.

If you subscribe to Modern Monetary Theory, the only thing you have to worry about is inflation. Inflation occurs when the price of goods and services increase, either through a lack of supply or when the value of the money is itself decreased.

Money used by the Government needs to be recouped in the form of tax, such that the money is simply not stashed away. Therefore all money created by Government should logically be returned to Government either in the form of taxation or through different savings and investment mediums such as bonds, or national savings.

Halting Winter Fuel Allowance Cut

Around 10 million people in England and Wales will not receive winter fuel payments this winter. Imagine the hardship that people who have supported this country for decades now have to face. It’s a scandal of epic proportions.

Under Chancellor Rachel Reeves’s plan, only those who receive pension credit or other means-tested benefits will still get the £200-£300 towards the cost of their energy bills.

If Modern Monetary Theory is correct, then the Government could create all the money it needs to satisfy payments to those in need, and recoup that money through the taxation of energy providers. It really could be as simple as that.

Subscribing to Modern Monetary Theory opens up a whole new debate on the economy, supply and demand, taxation, and the purpose of public money to stimulate the economy, invest in public infrastructures, pay public sector workers, and a whole lot more. It’s worth learning more about it, because MMT could change the course of our Country, from one of austerity, to one of greater prosperity.