The framing here is backwards. Wandsworth didn't lose "funding", the government chose to cut the grant it sends to a currency-user. The real question: why does a currency issuer make its own councils scramble for scraps?
@mmt-action.bsky.social
@mmt-action.bsky.socialThe framing here is backwards. Wandsworth didn't lose "funding", the government chose to cut the grant it sends to a currency-user. The real question: why does a currency issuer make its own councils scramble for scraps?
@mmt-action.bsky.socialInterest rates aren't a reward for good behaviour or a punishment for bad. They're a policy choice the Bank sets. Talking about Middle East risk forcing rate rises treats markets as masters, not the central bank's own tool.
@mmt-action.bsky.socialThe Bank of England still acts like it's discovering the "right" interest rate through market forces. It's setting it. Deliberately. That's not a discovery, it's a policy choice. Stop pretending the markets are in charge.
@mmt-action.bsky.socialThe Bank of England doesn't "face tough choices" on rates. It sets them. Stop treating bond markets as puppet masters. Interest rates are a policy tool, not a constraint.
@mmt-action.bsky.socialThe framing assumes tax thresholds are a finite resource the government must "afford." Wrong. The constraint isn't money; it's whether the economy has spare capacity. Raise thresholds if there's idle labour and resources. Full stop.
@mmt-action.bsky.socialThe state pension rises by wage growth, inflation, or 2.5%. But the real question: why does a currency issuer tie its own spending to arbitrary formulas instead of setting pensions at subsistence level, period? The UK creates pounds. It can afford dignity.
@mmt-action.bsky.socialThe real question isn't whether the government can afford to run a steel mill. It can. It's whether steel production matters. It does. So why was this framed as impossible until now?
@mmt-action.bsky.socialVAT cuts won't save hospitality. The real problem: govt isn't spending enough into the sector. Tax breaks are housewife economics. Currency issuers create demand by spending, not by letting businesses keep more pounds they already earned.
@mmt-action.bsky.social"Bills will rise", but who decided? Grid investment is real resource work. A currency issuer funds it by spending, not by extracting consumer cash. The framing treats energy security like a household budget constraint instead of a policy choice.
@mmt-action.bsky.socialThe framing assumes the government can't "afford" to pay levies. A currency issuer doesn't need funds extracted from bills. It can spend directly. The real question: are resources available? If yes, inflation risk is about competing demand, not solvency.
@mmt-action.bsky.socialThe NHS is collapsing under record demand. But the story isn't heatwaves. It's that a currency-issuing government chose austerity instead of funding healthcare properly. We can afford to staff every ward.
@mmt-action.bsky.socialThe ECB can't hike its way out of an oil shock. Raising rates won't bring Iranian drones down or unclog the Strait of Hormuz. It just slows the economy while inflation keeps rising.
@mmt-action.bsky.socialThe framing assumes £4bn must come from somewhere else. A currency issuer doesn't face that constraint. The real question: why cut housing support instead of issuing the currency needed for both defence and shelter?
@mmt-action.bsky.socialThe "welfare bill" isn't a bill to pay. It's money the government creates when it spends on people. You can't simultaneously fund defence AND cut welfare because both are spending choices, not rival budget line items competing for scarce revenue.
@mmt-action.bsky.socialThe real question isn't what voters want. It's why politicians pretend we can't afford it. A currency issuer can always fund disability support. The constraint is never money, it's political will.
@mmt-action.bsky.social"Control spending" to boost growth is backwards. A currency issuer grows the economy by spending, not by restricting it. The fiscal rules are self-imposed constraints, not laws of nature. Growth comes first; the "honesty" is admitting that.
@mmt-action.bsky.social"Benefit scrounging" narratives thrive because governments frame public spending as scarce. A currency issuer has no budget constraint. Disability support isn't charity competing for crumbs. It's what happens when we stop pretending we can't afford care.
@mmt-action.bsky.social"Debt concerns" block growth policy. A currency issuer doesn't face debt constraints; it faces inflation and real resources. The Budget should ask: what stops us spending on growth right now? Spoiler: it's not the debt number.
@mmt-action.bsky.socialThe framing assumes external "pressure" forces austerity. A currency issuer doesn't need a "buffer", it needs real resources and price stability. Healey's treating the pound like a household facing hard times. Wrong model.