Tom you are correct that the upcoming review will not deal with our financial crisis because the people running the country are not fit for purpose. They also follow others also not fit for purpose. We should focus on balancing the " books" by supply side growth not demand growth.
Hi John. You are correct. There is a supply side problem, I agree. It’s what that supply side supply of money is? Up to now the governments have a singular two dimensional I’m and out view of their economic position. From that, they decide to borrow to fill the gap or increase taxes or find new taxes or cut costs and budgets. You are correct again! These past governments and politicians are not fit for purpose because they are not bright enough to see you can’t run a government or a nation using two sided bookkeeping like a household budget! A government must govern over all the population and think of the tipples of their decisions in a three or four dimension. That is to appreciate that money once in, goes out but, they can’t see it goes around and back again a third dimension and finally it has a time dimension in as far as how slow or fast all that cycle happens! So yes! I completely agree, they are not fit for purpose! But no one has been fit for purpose. I blame Thatcher! She started this phenomenon of treating the UK PLC like a household budget! You can’t think like that. I have had the view for years that it’s been clear that a centuries old monetary system has the opportunity never before available of being able to track every penny within an economy. Since the computerised bank system snd the use of us all bank accounts with bank cards we finally have the ability to track every penny if, we do away with archaic cash! For centuries we have hoped money would return once spent! But now it is now in our choice to make sure money is returned to the economy every day! But for whatever reason we don’t. Or haven’t yet! The way I see it working is exchange all money for a new currency. A digital currency based on a uk digital electronic bank account. At that stage we can find out who actually has it all! Even sterling held abroad must be exchanged to be a value if new currency. Once we have that we need to calculate the need of number in our population. That’s mathematical but means a population of 60 million needs more digital money than say a population of 5 million! Once we get the right start, we make money move by putting a spend by date on money. Spend it or have it taken by the exchequer. We spend all money giving business proper cash flow and profits. It will give the government all the supply it needs via VAT only! No need for any other tax! Earn as much as you can but everyone has to fiend it or let it return to the exchequer. We will have higher wages because of increased profits. The government can have more than enough tax take for everything it needs. We can have a proper state pension that is more than sufficient! A benefits system to take care of all. Even the unemployable! It would be perpetual and autonomous. Streamline government and have enough for business so they can give proper wages! Now I see all uk bank accounts for all. If foreign governments want to sell goods, we buy and the money is deposited snd kept in the uk. So foreign governments have to spend it too! So they buy equivalent goods amounts! Or gave their money taken if not spent! In the same way. Let goods flow abroad but not money! That all stays in house! No more millionaires taking money abroad! The money supply we need and you talk about has to come from somewhere, where will it come from? In my view it should come from those who have it! Not from those who don’t! How can you take money from a poor man, you have to take it off those who hold it! We won’t need to save if we earn sufficient every month. That can only happen if the flow of money already out there is returned to the tax paying pot! At present no tax is paid or collected on money unused and unspent! Tax is only triggered when it’s spent! Tax is not collected on the rich who hold it for years! No tax, none! Income tax is daylight robbery! It’s not paid by employees it’s paid by employers! It’s based on and calculated by wages! Like Council tax is a calculation on house values. Except we choose to and actually pay Council tax! We don’t have the choice to pay or spend income tax it’s taken and is a tax on the employer! It’s not appreciated but the worker isn’t paying the income tax or NI. It’s the employer! Smoke and mirrors. Most tax is paid and earned by VAT and DUTY. But duty at say the fuel pump is hidden! It’s huge! The same with duty on tobacco, alcohol and stamp duty! All collect much more than income tax. So I say just have vat but, make all money move every month or get it taken by the exchequer. Make ad much money as you can but you have to spend it! Either way, the exchequer are guaranteed an income so large it’ll be a tsunami. Of money for them to spend! …. Sorry for writing, I didn’t want to write so much but, your supply view is correct! But it has to be fit for purpose to give the supply. They/we must start thinking in the round and have a time attached. I’m open to any better system. Mine may not be the utopia but at least it’s an answer. But I’m sure you and I are on the same page with the start to get it right! Sorry again!
Tom, a good précis. But you’re missing an obvious point. Our problem is not how we cut our government spending to fit the income of tax revenue. But we should look at the economy and find a way to increase that tax revenue by making the ‘system’ work better to afford ALL our needs!… it’s easy to cut expenditure to fit an amount of money, any idiot could do that and they seem to be doing it again! These politicians of all denominations have had a go at it, as you say over the last 25 years. It’s too easy to borrow money to plug the gap so instead of cutting essential services they have all decided to increase borrowing to make ends meet. Now Reeves, in a deluded attempt to outdo a conservative agenda by being more Conservative than the Conservatives has gone ever further by cutting benefits to OAP and the disabled and overloading business’ and their tax burden! What s stupid policy! She should be sacked immediately. Instead we need the brains to look at how tax is triggered so as to increase the flow of money into the economy by improving or in my view changing the ‘system’ that provides tax revenue to the exchequer so as to increase the tax take! If the exchequer needs more money, we need to look at how we can turbo charge the daily economy to make the money we need! What I don’t see, hear or read anyone looking at this answer? We hear about ‘growth’ and to get growth we need ‘investment’ . But, what I don’t hear is what is meant by ‘growth’!??… When we owe £3,000,000,000,000.00 yes, 3 trillion pounds how can we grow from that minus position to grow anything? We are hanging on by our fingertips to the present ability to meet our present tax demands. And as you say, that is well short of balancing the books. So it’s absurd to talk about growth in that sense and what is the ‘investment’ we need to to see to expect that growth to be achieved? Investments as we know do not guarantee any profit or return! So it’s an absurd and ridiculous expectation. What annoys me is how when top economists agree we need growth from investment! It’s like a driver who assumes they know about cars lifting a car bonnet after breaking down diving in to attempt to fix the problem when actually the car had run out of petrol! They are looking in the wrong place and the wrong direction and every AA or RAC man who turns up because he has the bonnet open all dive in too! It’s amazing the way economists can’t see what is needed! Rachel Reaves means ‘more tax revenue’ when she says “growth”. If she said that she might start looking in the right direction! Also instead of ‘investment’ she then says “we need more money” to give us the tax take we need she might start to see what we as the goose who lays the golden eggs to give her that tax revenue she may see or start to see the answer materialising in front of her! I still have my doubts she would but, I can live in hope! The key to affording our required expenditure is to turbo charge the economy by making more money move through it quicker and in more weight than it is at present! So how do we get more money in our daily economy? Well not by borrowing it! That costs and that easy out has been the go to for all governments for decades! There is a question of have we enough money in our economy in the first place? For example, an economy of 100 million people needs more money in it than say a population of 500,000 people. Thats a question for mathematicians. But next we must look at where is all the money and how is it used and taxed? We allow huge sums of money to be held unspent and unused by few individuals, companies and countries for so long that it is NOT in our daily economy! That the problem right there! The Government allow this situation! So they can not allow it? Thatcher took away exchange control regulations in 1979, opening the floodgates for incoming foreign money. But what we see is our money outgoing and not coming back! So put that right! Reestablish exchange controls. Don’t allow money to flow out. Then make it revolve. The more it does the higher the tax take. And by putting a date on it will ensure it is spent! Put a spend by date on income to ensure money revolves. So the economy that pays tax actually can at last pay enough tax to fulfil all our needs. Make as much money as you can! With more money flowing everyone will taste that tsunami of spending. All will earn more. We can afford everything we need. We will have higher wages and increased benefits including a better higher pension! Happiness to all not the few! Income Tax is paid by the employers! Not the employee! It’s smoke and mirrors. The business pay it based on wages yes, but paid from the employer! Most tax is paid by Vat and Duty nit income tax and NI. But that tax is hidden. It’s not in the bill from the petrol station that vat and fuel duty takes a massive amount of tax! Also tax is triggered like that by spending! So all money spent is taxed but guess what? Money not front snd unused is taxed free! Untaxed! Do rich snd wealthy who don’t spend all their earnings pay no tax! Unlike us who have to spend all our income to survive who pay as much tax as possible! So the rich pay no tax on money the hold. And they hold it for years untaxed! Even if h there was a wealth tax it wouldn’t be much as it’s unspent. Our economy needs spending! So they should be rich from what they earn and spend it on not the money itself! Our economy needs money flowing not sidelined. So there is the answer! Make money be spent or get it taken by the exchequer. That’ll keep money moving! Spend it or loose it! Why are you at the IEA not looking at the fuel guage?
Tom you are correct that the upcoming review will not deal with our financial crisis because the people running the country are not fit for purpose. They also follow others also not fit for purpose. We should focus on balancing the " books" by supply side growth not demand growth.
Hi John. You are correct. There is a supply side problem, I agree. It’s what that supply side supply of money is? Up to now the governments have a singular two dimensional I’m and out view of their economic position. From that, they decide to borrow to fill the gap or increase taxes or find new taxes or cut costs and budgets. You are correct again! These past governments and politicians are not fit for purpose because they are not bright enough to see you can’t run a government or a nation using two sided bookkeeping like a household budget! A government must govern over all the population and think of the tipples of their decisions in a three or four dimension. That is to appreciate that money once in, goes out but, they can’t see it goes around and back again a third dimension and finally it has a time dimension in as far as how slow or fast all that cycle happens! So yes! I completely agree, they are not fit for purpose! But no one has been fit for purpose. I blame Thatcher! She started this phenomenon of treating the UK PLC like a household budget! You can’t think like that. I have had the view for years that it’s been clear that a centuries old monetary system has the opportunity never before available of being able to track every penny within an economy. Since the computerised bank system snd the use of us all bank accounts with bank cards we finally have the ability to track every penny if, we do away with archaic cash! For centuries we have hoped money would return once spent! But now it is now in our choice to make sure money is returned to the economy every day! But for whatever reason we don’t. Or haven’t yet! The way I see it working is exchange all money for a new currency. A digital currency based on a uk digital electronic bank account. At that stage we can find out who actually has it all! Even sterling held abroad must be exchanged to be a value if new currency. Once we have that we need to calculate the need of number in our population. That’s mathematical but means a population of 60 million needs more digital money than say a population of 5 million! Once we get the right start, we make money move by putting a spend by date on money. Spend it or have it taken by the exchequer. We spend all money giving business proper cash flow and profits. It will give the government all the supply it needs via VAT only! No need for any other tax! Earn as much as you can but everyone has to fiend it or let it return to the exchequer. We will have higher wages because of increased profits. The government can have more than enough tax take for everything it needs. We can have a proper state pension that is more than sufficient! A benefits system to take care of all. Even the unemployable! It would be perpetual and autonomous. Streamline government and have enough for business so they can give proper wages! Now I see all uk bank accounts for all. If foreign governments want to sell goods, we buy and the money is deposited snd kept in the uk. So foreign governments have to spend it too! So they buy equivalent goods amounts! Or gave their money taken if not spent! In the same way. Let goods flow abroad but not money! That all stays in house! No more millionaires taking money abroad! The money supply we need and you talk about has to come from somewhere, where will it come from? In my view it should come from those who have it! Not from those who don’t! How can you take money from a poor man, you have to take it off those who hold it! We won’t need to save if we earn sufficient every month. That can only happen if the flow of money already out there is returned to the tax paying pot! At present no tax is paid or collected on money unused and unspent! Tax is only triggered when it’s spent! Tax is not collected on the rich who hold it for years! No tax, none! Income tax is daylight robbery! It’s not paid by employees it’s paid by employers! It’s based on and calculated by wages! Like Council tax is a calculation on house values. Except we choose to and actually pay Council tax! We don’t have the choice to pay or spend income tax it’s taken and is a tax on the employer! It’s not appreciated but the worker isn’t paying the income tax or NI. It’s the employer! Smoke and mirrors. Most tax is paid and earned by VAT and DUTY. But duty at say the fuel pump is hidden! It’s huge! The same with duty on tobacco, alcohol and stamp duty! All collect much more than income tax. So I say just have vat but, make all money move every month or get it taken by the exchequer. Make ad much money as you can but you have to spend it! Either way, the exchequer are guaranteed an income so large it’ll be a tsunami. Of money for them to spend! …. Sorry for writing, I didn’t want to write so much but, your supply view is correct! But it has to be fit for purpose to give the supply. They/we must start thinking in the round and have a time attached. I’m open to any better system. Mine may not be the utopia but at least it’s an answer. But I’m sure you and I are on the same page with the start to get it right! Sorry again!
Tom, a good précis. But you’re missing an obvious point. Our problem is not how we cut our government spending to fit the income of tax revenue. But we should look at the economy and find a way to increase that tax revenue by making the ‘system’ work better to afford ALL our needs!… it’s easy to cut expenditure to fit an amount of money, any idiot could do that and they seem to be doing it again! These politicians of all denominations have had a go at it, as you say over the last 25 years. It’s too easy to borrow money to plug the gap so instead of cutting essential services they have all decided to increase borrowing to make ends meet. Now Reeves, in a deluded attempt to outdo a conservative agenda by being more Conservative than the Conservatives has gone ever further by cutting benefits to OAP and the disabled and overloading business’ and their tax burden! What s stupid policy! She should be sacked immediately. Instead we need the brains to look at how tax is triggered so as to increase the flow of money into the economy by improving or in my view changing the ‘system’ that provides tax revenue to the exchequer so as to increase the tax take! If the exchequer needs more money, we need to look at how we can turbo charge the daily economy to make the money we need! What I don’t see, hear or read anyone looking at this answer? We hear about ‘growth’ and to get growth we need ‘investment’ . But, what I don’t hear is what is meant by ‘growth’!??… When we owe £3,000,000,000,000.00 yes, 3 trillion pounds how can we grow from that minus position to grow anything? We are hanging on by our fingertips to the present ability to meet our present tax demands. And as you say, that is well short of balancing the books. So it’s absurd to talk about growth in that sense and what is the ‘investment’ we need to to see to expect that growth to be achieved? Investments as we know do not guarantee any profit or return! So it’s an absurd and ridiculous expectation. What annoys me is how when top economists agree we need growth from investment! It’s like a driver who assumes they know about cars lifting a car bonnet after breaking down diving in to attempt to fix the problem when actually the car had run out of petrol! They are looking in the wrong place and the wrong direction and every AA or RAC man who turns up because he has the bonnet open all dive in too! It’s amazing the way economists can’t see what is needed! Rachel Reaves means ‘more tax revenue’ when she says “growth”. If she said that she might start looking in the right direction! Also instead of ‘investment’ she then says “we need more money” to give us the tax take we need she might start to see what we as the goose who lays the golden eggs to give her that tax revenue she may see or start to see the answer materialising in front of her! I still have my doubts she would but, I can live in hope! The key to affording our required expenditure is to turbo charge the economy by making more money move through it quicker and in more weight than it is at present! So how do we get more money in our daily economy? Well not by borrowing it! That costs and that easy out has been the go to for all governments for decades! There is a question of have we enough money in our economy in the first place? For example, an economy of 100 million people needs more money in it than say a population of 500,000 people. Thats a question for mathematicians. But next we must look at where is all the money and how is it used and taxed? We allow huge sums of money to be held unspent and unused by few individuals, companies and countries for so long that it is NOT in our daily economy! That the problem right there! The Government allow this situation! So they can not allow it? Thatcher took away exchange control regulations in 1979, opening the floodgates for incoming foreign money. But what we see is our money outgoing and not coming back! So put that right! Reestablish exchange controls. Don’t allow money to flow out. Then make it revolve. The more it does the higher the tax take. And by putting a date on it will ensure it is spent! Put a spend by date on income to ensure money revolves. So the economy that pays tax actually can at last pay enough tax to fulfil all our needs. Make as much money as you can! With more money flowing everyone will taste that tsunami of spending. All will earn more. We can afford everything we need. We will have higher wages and increased benefits including a better higher pension! Happiness to all not the few! Income Tax is paid by the employers! Not the employee! It’s smoke and mirrors. The business pay it based on wages yes, but paid from the employer! Most tax is paid by Vat and Duty nit income tax and NI. But that tax is hidden. It’s not in the bill from the petrol station that vat and fuel duty takes a massive amount of tax! Also tax is triggered like that by spending! So all money spent is taxed but guess what? Money not front snd unused is taxed free! Untaxed! Do rich snd wealthy who don’t spend all their earnings pay no tax! Unlike us who have to spend all our income to survive who pay as much tax as possible! So the rich pay no tax on money the hold. And they hold it for years untaxed! Even if h there was a wealth tax it wouldn’t be much as it’s unspent. Our economy needs spending! So they should be rich from what they earn and spend it on not the money itself! Our economy needs money flowing not sidelined. So there is the answer! Make money be spent or get it taken by the exchequer. That’ll keep money moving! Spend it or loose it! Why are you at the IEA not looking at the fuel guage?