In this Institute of Economic Affairs podcast, IEA Head of Media and Linda Whetstone Scholar Reem Ibrahim interviews Executive Director Tom Clougherty and Editorial Director Kristian Niemietz.
Great piece again. Very interesting indeed. Firstly you all seem to revert to cuts. You realise that we are over taxed so increases there are a limited choice to improve our balance of payments. And as growth is stagnant then, ‘qui surprise’ cuts! Everything from budget cuts to pensions to privatising including the NHS. I get that. I get that is the obvious choice and I get that’s what you deduce. However, it’s because you can’t improve growth. You are as our politicians are. Except they won’t cut as much as you think they should. But I think you’re not seeing the bigger picture. We are underfunded everywhere. Because we have already had cuts and smaller budgets for so long we snd you obviously think it’s still an answer! I’ve got news for you, it’s not the answer and the lack of direction towards growth is frustrating and narrow minded. I have sympathy with your standpoint. Of course there is waste. You yourselves see it in day the cost of planning procedures that cost us a fortune just to put through an application. But who gets that money? It’s still going into our economy at least and not to have it will adversely affect it. Similarly the NHS. Of course it’s massive waste! We have more pen pushers managing the queues and appointments than doctors! If we didn’t have queues we won’t need the managers and pen pushers. We should centralise all repeated work but then the workers lose their jobs. So one good thing brings in bad things again. As much as you want to, you just can’t bring balance sheets into political decisions of people’s lively hoods. It needs more holistic thinking. We need vision . Not calculators and narrow band widths of thinking, so where will the money come from? …. The same bloody place it’s always come from of course! Taxation of a working economy!! The thing is how can we have an economy that works unless the money is actually in it!? I ask ???… look, there is apparently £18 trillion pounds out there in the aether. If it was to be spent just once, not hundreds of times in a year, just the once, then VAT alone, no other tax just 20% VAT should bring in £3.8 trillion in tax revenue! Yes £3.8 trillion pounds. At present we get in a too small £1.1 trillion pounds. So I ask the three of you, why do you think it is so low? Why are we not getting in the £3.8 trillion and only getting in £1.1 trillion pounds in all taxes ?? …. Is it because our economic pot is underfunded?…., of course it is!!!!!! Which means everything else from pensions to wages to the NHS and potholes are underfunded too! Why are you not debating this side of our economic equation? … I want you to. Remember a self employed business has no choice. It has to go out and earn the profit it needs for survival. Do it goes after what it needs to make ends meet. Not just cut. So start thinking like most of our nation. Get more creative about improving the flow of money around our economy to feed the house that lays the golden eggs of tax revenue. Look at that not cuts! Remember MS=R Money multiplied by Spending equals revenue. That’s an efficient economy in equations. You can’t get tax revenue any other way. It has to be from money and spending as without both you don’t have a working economy. And we don’t have much money and we have from that too little spending. Thus creating too little revenue and too little tax revenue. Anyone can understand that surely? Our money revolves each year. It’s the same money rotating like a circular conveyor belt. And each year that revolution should create enough money from tax to pay all our needs. But if we allow the rich super rich and mega rich to hang on to it, keeping it out of our reach and our economy’s flow. Then that’s the sole reason for why we can’t make ends meet. It’s not list or burnt or stolen. It’s the governments rules that allow such hoarding or giving off of money do we and our economy’s flow are devoid of it! We are all underfunded because of it. Can’t anyone see that??
Great piece again. Very interesting indeed. Firstly you all seem to revert to cuts. You realise that we are over taxed so increases there are a limited choice to improve our balance of payments. And as growth is stagnant then, ‘qui surprise’ cuts! Everything from budget cuts to pensions to privatising including the NHS. I get that. I get that is the obvious choice and I get that’s what you deduce. However, it’s because you can’t improve growth. You are as our politicians are. Except they won’t cut as much as you think they should. But I think you’re not seeing the bigger picture. We are underfunded everywhere. Because we have already had cuts and smaller budgets for so long we snd you obviously think it’s still an answer! I’ve got news for you, it’s not the answer and the lack of direction towards growth is frustrating and narrow minded. I have sympathy with your standpoint. Of course there is waste. You yourselves see it in day the cost of planning procedures that cost us a fortune just to put through an application. But who gets that money? It’s still going into our economy at least and not to have it will adversely affect it. Similarly the NHS. Of course it’s massive waste! We have more pen pushers managing the queues and appointments than doctors! If we didn’t have queues we won’t need the managers and pen pushers. We should centralise all repeated work but then the workers lose their jobs. So one good thing brings in bad things again. As much as you want to, you just can’t bring balance sheets into political decisions of people’s lively hoods. It needs more holistic thinking. We need vision . Not calculators and narrow band widths of thinking, so where will the money come from? …. The same bloody place it’s always come from of course! Taxation of a working economy!! The thing is how can we have an economy that works unless the money is actually in it!? I ask ???… look, there is apparently £18 trillion pounds out there in the aether. If it was to be spent just once, not hundreds of times in a year, just the once, then VAT alone, no other tax just 20% VAT should bring in £3.8 trillion in tax revenue! Yes £3.8 trillion pounds. At present we get in a too small £1.1 trillion pounds. So I ask the three of you, why do you think it is so low? Why are we not getting in the £3.8 trillion and only getting in £1.1 trillion pounds in all taxes ?? …. Is it because our economic pot is underfunded?…., of course it is!!!!!! Which means everything else from pensions to wages to the NHS and potholes are underfunded too! Why are you not debating this side of our economic equation? … I want you to. Remember a self employed business has no choice. It has to go out and earn the profit it needs for survival. Do it goes after what it needs to make ends meet. Not just cut. So start thinking like most of our nation. Get more creative about improving the flow of money around our economy to feed the house that lays the golden eggs of tax revenue. Look at that not cuts! Remember MS=R Money multiplied by Spending equals revenue. That’s an efficient economy in equations. You can’t get tax revenue any other way. It has to be from money and spending as without both you don’t have a working economy. And we don’t have much money and we have from that too little spending. Thus creating too little revenue and too little tax revenue. Anyone can understand that surely? Our money revolves each year. It’s the same money rotating like a circular conveyor belt. And each year that revolution should create enough money from tax to pay all our needs. But if we allow the rich super rich and mega rich to hang on to it, keeping it out of our reach and our economy’s flow. Then that’s the sole reason for why we can’t make ends meet. It’s not list or burnt or stolen. It’s the governments rules that allow such hoarding or giving off of money do we and our economy’s flow are devoid of it! We are all underfunded because of it. Can’t anyone see that??