The Myth that Austerity was a necessary evil

[dave_blue12]

I came across this video which explains in simple terms how monetary policy works and how people are commonly mislead. Especially one for @Chippy_boy

 

[Chippy_boy]

I came across this video which explains in simple terms how monetary policy works and how people are commonly mislead. Especially one for @Chippy_boy

I studied macro economics at university you pillock.

 

[Corky]

"Governments don't need to tax or borrow to finance their spending" - Fuck me.

Why have they all got it so wrong thus far?

 

[dave_blue12]

"Governments don't need to tax or borrow to finance their spending" - Fuck me.

Why have they all got it so wrong thus far?

Any Government can just create money. As explained in the video taxation is a means of taking money out of the economy to make room for Govt expenditure. Any Govt that simply creates money will likely unleash inflation. What is so hard to understand?

No Gov't needs to repay its own debt.

 

[Corky]

Any Government can just create money. As explained in the video taxation is a means of taking money out of the economy to make room for Govt expenditure. Any Govt that simply creates money will likely unleash inflation. What is so hard to understand?

No Gov't needs to repay its own debt.

Debt isn't free. Pay billions in interest in perpetuity for no added value is not a prudent solution.

The video is nonsense.

 

[dave_blue12]

Debt isn't free. Pay billions in interest in perpetuity for no added value is not a prudent solution.

The video is nonsense.

Nope, your grasp of economics is nonsense.

A Govt only creates debt if it chooses.

 

[Mr Kobayashi]

He has been told this many times. Wasting your time with someone like Chippy as he is a fanatic and can't be persuaded otherwise.

 

[Mr Kobayashi]

 

[urban genie]

Austerity is an ideology not an effective economic model

 

[Kippaxpete]

I studied macro economics at university you pillock.

So you have a broad understanding of economics. It doesn't make you right! You, more than anyone, must acknowledge that economics is a broad church with various conflicting models.