beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,029
No those kids wont have to support us with their tax. This is a neo-liberal myth. Tax doesn`t pay for government spending. A government such as ours with its own sovereign currency neither has to tax or borrow. Its not like a household, a local council, a nation in the Eurozone, or a firm, which do have to balance their books. Our government creates new money when it spends and destroys it when it taxes. Thats why tax is called revenue (it returns to the government).
taxation and spending is not a neo-liberal myth, how money traditionally works. you are buying in to a hypothesis of monetary policy that some wish for, so they could have infinite money without consequence. consider why does Eurozone have different monetary structure to UK.