Economyths

HOW ARE YOU GOING TO PAY FOR IT ?

A: Modern Monetary Theory says :

We often hear this question from interviewers in the media when a politician proposes spending money on something like housing, training, public services, or staplers for a government department. The answers vary, we'll tax more or we'll reduce spending somewhere else. But none of this describes what really happens, or can happen. A government like UK, US that issue its own currency, faces no financial constraints, doesn't need tax for income, and simply can create the money via keystrokes on a keyboard! Yes-hard to grasp, isn't it! The constraints it faces are real resources e.g. being able to buy what it wants in its own currency and controlling inflation via taxes. It can"t run out of £'s.