In this new Land of Opportunity series, the Institute of Economic Affairs has partnered with Land of Opportunity to explore why America’s economy has dramatically outpaced Europe since 2008.
Andrew, you are looking at America through rose tinted spectacles. You are wrongly assuming it’s their ability to strive is greater than those in the UK. You both look at the EU as stifling enterprise with red tape and bureaucracy and assuming the government spend beyond its means. I hope I’ve got the gist right. But you are looking at it from the wrong view. The reason why the US grows is simple. It prints money like it’s going out of fashion. The US deficit is running at $35-40 trillion dollars. A level so high it’s intergalactic. It is taking in the profits from failing economies, like ours, as a result. So too is the EU and China. In fact the biggest economies are now taking in the losses and debts of the powerful countries below in the table. What you are seeing in front of your eyes is the evidence snd the result of the rich getting richer whilst the poor are paying them their wealth to make them richer and themselves poorer. David said the right word right at the beginning. He said “SPENDING!”…. But then went on to say it’s the overspending of our government that’s the point which he says, needs to be restrained by cuts. He is right with SPENDING but, for the wrong reason. It’s not that the governments are spending beyond their means, no. It’s that their means is insufficient for our needs. Look around us. In all country’s there are mega rich cheek by jowl with mega poor. In the main the few, the rich and the majority the poor and overstretched middle who are poorer too. So it’s undemocratic that the money is split so unfairly. And it’s allowed because of the system, its rules and the framework of money moving. Take a look at our services and those in the US. They are terribly underfunded and have been for years. Despite increased budgets every service is creaking and crumbling. Because of overwhelming amounts of underfunding. This is because the budgets are themselves insufficient. Yes there is waste. And yes different choices can and should be made. But if the tax and spend system of governance we all have was ever sufficient then why do we have such large deficits? The need for proper funding has never been more greater. So why is it, do you all think, is the reason for this underfunded services? Well it’s not because of a lack of money out there in the aether. Both US dollars and pounds sterling as well as Euros are out there in lakes of cash. The whole world’s banking system is full of the stuff. So it’s not so much a lack of money. So why are we not paying more in taxes? Well it’s simple. Because most of the worlds money is being held outside of normal people’s reach in tax havens, Banks and held by those who have it and don’t SPEND it because the system allows them to keep it! This fact is the sole reason for our plight. It’s the sole reason why we all have to print more and more money and what happens when even that’s not enough? We all borrow it! And guess where from? From those people who have it and hold it out of our reach because they don’t have to SPEND it! So they have it to lend! And the Banks leverage it and risk it like it’s theirs. You see, any economy has just two requirements. Money and spending. Without either means it’s not an economy as it won’t work. Money is used as a token, to exchange, fairly exchange, your work for mine. It matters not if you are a public sector or private. Each are symbiotic of each urgent. Without the while money being spent then neither gets profits to pay wages. Employers, self employed, workers of non workers. Nobody gets money without the others spending and moving of money. It’s the fundamental consequence of any working economy. People need to earn. Without money spent to them they can’t earn. And do money has to constantly move and rotate around, as David said, “the goose that lays the golden egg” of tax revenue which are people snd businesses having the ability to work, earn and pay their way perpetually to endure tax revenue is paid. The faster money is moved by Spending then the more revenue is made. The bigger the weight of money being spent is critical to this perpetual motion and also the time it takes us standpoint to make sure it’s rotated in time to pay everyone in time. As today, we don’t have sufficient money in our economy, so there is insufficient spending. And thus insufficient tax take. Do the government are just as devoid of it as us all. …. Except those who have it snd hold it because they can. The rich. They hold it in such quantity and for so long in time, we are devoid of it. And that’s why we are in the crapper we are now. It’s got nothing to do with the American dream. It’s a dream. It’s an illusion propagated to make everyone feel they have a chance. But like most gambles, the house is stacked against you. The strongest survive. So everyone else is in danger. This whine system is flawed. So what’s to be changed? Well more cuts aren’t the answer my friends. That’s never going to give us growth enough to claw ourselves out this one. No. And what cuts do you want. All of it? Have no spending? What will that achieve? Nothing! And so we are left with how to grow our revenue stream enough to cover the costs of governance and all our need for incomes? Well it’s pretty easy to see. If we need increased revenue we need more of our money already out there, that presently isn’t being SPENT, to start being, SPENT. For that we need to take back control of our money. We are a democracy. Brexit has shown us that the 49% must obey the will of the 51%. So let’s start telling the few that the majority will no longer put up with them withholding SPENDING our money back! We can now do this with a reinstatement of exchange controls. Don’t allow our money to leave its origin country. Then exchange all old money for new digital currency in smart cards. That track every penny. Put a spend by date in income to ensure it’s SPENT. Or have it taken by the exchequer. Then see the tsunami of spending that will follow to super charge our economy do we no longer have to borrow back our money. Be wealthy from the goods and asset you buy with the money you earn. And not keep the money itself. Let it flow. The damming off of money in effect withholding it is the one thing that makes us devoid of it. Any economy needs money in it and that money being SPENT to make the whole system work as it should. Money should be a token of fair exchange of work. It’s needed to oil the engine of the economy. And spending is the rocket fuel that makes the engine go fast. And any engine needs to be timed. To ensure it’s not broken in a catastrophe. So is that clear? We need a democratic capitalist economy. Earn as much as you can! After all I’m no communist. But unless it’s spent back freely, not loaned back, or worse still invested back with future profits attached, we don’t have a working economy. Look, in the UK there is as apparently £19 trillion pounds in the aether. If we were to spend it once. In one cycle, one rotation in a whole year. Then the Vat alone should bring in £3.8 trillion pounds in tax take. We presently only manage £1.1 trillion pounds. So there you have it. The power of all money moving once! In one year. A four fold increase in tax revenue. With less taxes and no borrowing! Not just that. All that extra spending means more profits for all. Higher wages, higher pensions. Even the rich will get richer from all that increased spending. But they will have to be wealthy on what they buy to keep it. Not keep hold of the money itself. They’ll have to spend it just like everyone else! Democracy in action at last!
Andrew, you are looking at America through rose tinted spectacles. You are wrongly assuming it’s their ability to strive is greater than those in the UK. You both look at the EU as stifling enterprise with red tape and bureaucracy and assuming the government spend beyond its means. I hope I’ve got the gist right. But you are looking at it from the wrong view. The reason why the US grows is simple. It prints money like it’s going out of fashion. The US deficit is running at $35-40 trillion dollars. A level so high it’s intergalactic. It is taking in the profits from failing economies, like ours, as a result. So too is the EU and China. In fact the biggest economies are now taking in the losses and debts of the powerful countries below in the table. What you are seeing in front of your eyes is the evidence snd the result of the rich getting richer whilst the poor are paying them their wealth to make them richer and themselves poorer. David said the right word right at the beginning. He said “SPENDING!”…. But then went on to say it’s the overspending of our government that’s the point which he says, needs to be restrained by cuts. He is right with SPENDING but, for the wrong reason. It’s not that the governments are spending beyond their means, no. It’s that their means is insufficient for our needs. Look around us. In all country’s there are mega rich cheek by jowl with mega poor. In the main the few, the rich and the majority the poor and overstretched middle who are poorer too. So it’s undemocratic that the money is split so unfairly. And it’s allowed because of the system, its rules and the framework of money moving. Take a look at our services and those in the US. They are terribly underfunded and have been for years. Despite increased budgets every service is creaking and crumbling. Because of overwhelming amounts of underfunding. This is because the budgets are themselves insufficient. Yes there is waste. And yes different choices can and should be made. But if the tax and spend system of governance we all have was ever sufficient then why do we have such large deficits? The need for proper funding has never been more greater. So why is it, do you all think, is the reason for this underfunded services? Well it’s not because of a lack of money out there in the aether. Both US dollars and pounds sterling as well as Euros are out there in lakes of cash. The whole world’s banking system is full of the stuff. So it’s not so much a lack of money. So why are we not paying more in taxes? Well it’s simple. Because most of the worlds money is being held outside of normal people’s reach in tax havens, Banks and held by those who have it and don’t SPEND it because the system allows them to keep it! This fact is the sole reason for our plight. It’s the sole reason why we all have to print more and more money and what happens when even that’s not enough? We all borrow it! And guess where from? From those people who have it and hold it out of our reach because they don’t have to SPEND it! So they have it to lend! And the Banks leverage it and risk it like it’s theirs. You see, any economy has just two requirements. Money and spending. Without either means it’s not an economy as it won’t work. Money is used as a token, to exchange, fairly exchange, your work for mine. It matters not if you are a public sector or private. Each are symbiotic of each urgent. Without the while money being spent then neither gets profits to pay wages. Employers, self employed, workers of non workers. Nobody gets money without the others spending and moving of money. It’s the fundamental consequence of any working economy. People need to earn. Without money spent to them they can’t earn. And do money has to constantly move and rotate around, as David said, “the goose that lays the golden egg” of tax revenue which are people snd businesses having the ability to work, earn and pay their way perpetually to endure tax revenue is paid. The faster money is moved by Spending then the more revenue is made. The bigger the weight of money being spent is critical to this perpetual motion and also the time it takes us standpoint to make sure it’s rotated in time to pay everyone in time. As today, we don’t have sufficient money in our economy, so there is insufficient spending. And thus insufficient tax take. Do the government are just as devoid of it as us all. …. Except those who have it snd hold it because they can. The rich. They hold it in such quantity and for so long in time, we are devoid of it. And that’s why we are in the crapper we are now. It’s got nothing to do with the American dream. It’s a dream. It’s an illusion propagated to make everyone feel they have a chance. But like most gambles, the house is stacked against you. The strongest survive. So everyone else is in danger. This whine system is flawed. So what’s to be changed? Well more cuts aren’t the answer my friends. That’s never going to give us growth enough to claw ourselves out this one. No. And what cuts do you want. All of it? Have no spending? What will that achieve? Nothing! And so we are left with how to grow our revenue stream enough to cover the costs of governance and all our need for incomes? Well it’s pretty easy to see. If we need increased revenue we need more of our money already out there, that presently isn’t being SPENT, to start being, SPENT. For that we need to take back control of our money. We are a democracy. Brexit has shown us that the 49% must obey the will of the 51%. So let’s start telling the few that the majority will no longer put up with them withholding SPENDING our money back! We can now do this with a reinstatement of exchange controls. Don’t allow our money to leave its origin country. Then exchange all old money for new digital currency in smart cards. That track every penny. Put a spend by date in income to ensure it’s SPENT. Or have it taken by the exchequer. Then see the tsunami of spending that will follow to super charge our economy do we no longer have to borrow back our money. Be wealthy from the goods and asset you buy with the money you earn. And not keep the money itself. Let it flow. The damming off of money in effect withholding it is the one thing that makes us devoid of it. Any economy needs money in it and that money being SPENT to make the whole system work as it should. Money should be a token of fair exchange of work. It’s needed to oil the engine of the economy. And spending is the rocket fuel that makes the engine go fast. And any engine needs to be timed. To ensure it’s not broken in a catastrophe. So is that clear? We need a democratic capitalist economy. Earn as much as you can! After all I’m no communist. But unless it’s spent back freely, not loaned back, or worse still invested back with future profits attached, we don’t have a working economy. Look, in the UK there is as apparently £19 trillion pounds in the aether. If we were to spend it once. In one cycle, one rotation in a whole year. Then the Vat alone should bring in £3.8 trillion pounds in tax take. We presently only manage £1.1 trillion pounds. So there you have it. The power of all money moving once! In one year. A four fold increase in tax revenue. With less taxes and no borrowing! Not just that. All that extra spending means more profits for all. Higher wages, higher pensions. Even the rich will get richer from all that increased spending. But they will have to be wealthy on what they buy to keep it. Not keep hold of the money itself. They’ll have to spend it just like everyone else! Democracy in action at last!