Nice overview Callum. However my view is that Growth is a red herring. Piggybank economics tells us that the pot can’t grow on its own and it’ll only grow if you don’t take any out! And off course you have to put money in! We are in debt to the tune of a trillion £s and that’s still not enough! The key to a true economy that flows at its optimum and perpetually is making ALL money move Sll at once, perpetually. But most of our money is not in use. It’s sidelined, unspent and hoarded. So the majority of us are devoid of that money, hence why we are short of it! The bulk of money is held unused by a very small minority. Where the majority of us have to work with an ever decreasing pot of usable money. That’s not good and not at all democratic! Tax revenue to the exchequer only happens when money is spent or has to change hands. So tax collection is only effective on money moving or being spent. The rich and wealthy don’t spend their holding so, no tax is generated! It doesn’t matter what tax is applied or what rate, if money isn’t spent it won’t contribute to the exchequer. Also the rich get richer by the poor getting poorer, except the poor are now all of us! We are all poor and all our money goes to the rich non taxpayers eventually. My fix would be put a spend by date on that unused hoarded money. Be rich with stuff bought when it’s spent not the money itself.
Answer: nobody unless there really are a few odd people who store wads of notes in the proverbial mattress.
This notion of “hoarding” money is utterly bizarre.
The rich utilise their wealth by investing it, ie supplying the capital that businesses need to set up in the first place and thereafter increase their productive capacity. That is money being used in the best way possible; it is not “unused, hoarded money”.
And this utilisation of wealth does, contrary to your assertion, generate tax for the exchequer through taxes on dividends, interest and capital gains.
We need a whole lot more of what you disparage as hoarding, not less.
It’s not money under mattresses I’m talking about. Sorry if it was confusing. I’m talking about the money not in our economic pot on a daily basis. You are right, the wealthy do bank their money for others to borrow it. But as i say it makes those lenders more wealthy by the borrowers getting poorer, in the long run. I’m more interested in how that money can do more for the economy. Up to now the present systems just don’t work. The debt we all have to suffer is as high as our GDP. Most of the money in existence is not in our daily or weekly pot. From that pot we are expected to spend and earn and pay taxes. However, as we can see the taxes are insufficient and the government need to borrow to maintain services. That can’t hi on forever. So my view is what is missing? What is keeping us from earning and why isn’t there money sufficient to maintain high standards of living and pay sufficient taxes? Has the money disappeared? No, it’s idle and outside the economic pot, in banks yes, but abroad more likely or held by the rich countries. Anywhere but being spent in our economy day to day. So as I say, making money move is the key. Do that on an industrial scale and it changes instantly. For example, if I said give every 650 MPs a £1 and you might say it would cost £650? But I say give the first one a £1 and make him spend it with the next and so on, all get a £1 and it only cost a £1. It’s the way money if it moves it means it works for all. I’m trying to think outside the box, but it’s the stagnant economy that needs speeding up by spending and earning and not borrowing. I hope that gets you thinking?
Nice overview Callum. However my view is that Growth is a red herring. Piggybank economics tells us that the pot can’t grow on its own and it’ll only grow if you don’t take any out! And off course you have to put money in! We are in debt to the tune of a trillion £s and that’s still not enough! The key to a true economy that flows at its optimum and perpetually is making ALL money move Sll at once, perpetually. But most of our money is not in use. It’s sidelined, unspent and hoarded. So the majority of us are devoid of that money, hence why we are short of it! The bulk of money is held unused by a very small minority. Where the majority of us have to work with an ever decreasing pot of usable money. That’s not good and not at all democratic! Tax revenue to the exchequer only happens when money is spent or has to change hands. So tax collection is only effective on money moving or being spent. The rich and wealthy don’t spend their holding so, no tax is generated! It doesn’t matter what tax is applied or what rate, if money isn’t spent it won’t contribute to the exchequer. Also the rich get richer by the poor getting poorer, except the poor are now all of us! We are all poor and all our money goes to the rich non taxpayers eventually. My fix would be put a spend by date on that unused hoarded money. Be rich with stuff bought when it’s spent not the money itself.
Who on earth “hoards” money?
Answer: nobody unless there really are a few odd people who store wads of notes in the proverbial mattress.
This notion of “hoarding” money is utterly bizarre.
The rich utilise their wealth by investing it, ie supplying the capital that businesses need to set up in the first place and thereafter increase their productive capacity. That is money being used in the best way possible; it is not “unused, hoarded money”.
And this utilisation of wealth does, contrary to your assertion, generate tax for the exchequer through taxes on dividends, interest and capital gains.
We need a whole lot more of what you disparage as hoarding, not less.
It’s not money under mattresses I’m talking about. Sorry if it was confusing. I’m talking about the money not in our economic pot on a daily basis. You are right, the wealthy do bank their money for others to borrow it. But as i say it makes those lenders more wealthy by the borrowers getting poorer, in the long run. I’m more interested in how that money can do more for the economy. Up to now the present systems just don’t work. The debt we all have to suffer is as high as our GDP. Most of the money in existence is not in our daily or weekly pot. From that pot we are expected to spend and earn and pay taxes. However, as we can see the taxes are insufficient and the government need to borrow to maintain services. That can’t hi on forever. So my view is what is missing? What is keeping us from earning and why isn’t there money sufficient to maintain high standards of living and pay sufficient taxes? Has the money disappeared? No, it’s idle and outside the economic pot, in banks yes, but abroad more likely or held by the rich countries. Anywhere but being spent in our economy day to day. So as I say, making money move is the key. Do that on an industrial scale and it changes instantly. For example, if I said give every 650 MPs a £1 and you might say it would cost £650? But I say give the first one a £1 and make him spend it with the next and so on, all get a £1 and it only cost a £1. It’s the way money if it moves it means it works for all. I’m trying to think outside the box, but it’s the stagnant economy that needs speeding up by spending and earning and not borrowing. I hope that gets you thinking?