People like Organ Kelly and Lo! Varuka! seem to have deeply misunderstood the nature of the catastrophe we are all caught up in. The current economy creates money from debt using the fractional reserve banking system. For such a system to work the world economy and all its component parts need access to affordable lines of credit.
Normally interest rates are used to control inflation that might result, but where there is next to no consumer confidence, this is unsupportable. Higher taxes are not needed to keep inflation down - there is little or no inflation
Long story short - you cannot "cut" your way out of a recession. You must spend.
This counter-intuitive solution is similar to how benefits arise from a low tax economy. At a certain point, when you lower taxes, your total tax take begins to rise, people people are more willing to work in a low tax economy and because the economy can support itself better by being "leaner" on taxes.
Similarly we need to grow an economy to better shoulder the burden of a large public service bill. And to do that we need to spend money.
I don't need the Masters of Dom and their Negativity Diet trying to poison my good humour.
We need to put the world economy back on a positivity diet - today!
Normally interest rates are used to control inflation that might result, but where there is next to no consumer confidence, this is unsupportable. Higher taxes are not needed to keep inflation down - there is little or no inflation
Long story short - you cannot "cut" your way out of a recession. You must spend.
This counter-intuitive solution is similar to how benefits arise from a low tax economy. At a certain point, when you lower taxes, your total tax take begins to rise, people people are more willing to work in a low tax economy and because the economy can support itself better by being "leaner" on taxes.
Similarly we need to grow an economy to better shoulder the burden of a large public service bill. And to do that we need to spend money.
I don't need the Masters of Dom and their Negativity Diet trying to poison my good humour.
We need to put the world economy back on a positivity diet - today!