I'm sure it a complete coincidence that where I live has not been greatly "enriched" and its benefit bill looks like this.Ranked 526 of 575 by total spendTotal benefits bill · £1,233 per resident · +16.8% in 2yrsMedian local wage: £42,366 (+9.7% in 2yrs)Though even here the bennies bill is rising faster than even a relatively productive area can support long term.Further coincidence that the areas full of bennie bunnies are also the areas where we've filled them with people that are needed "to pay our pensions". How is that working out?
The entire Benefits system needs scrapping and starting from scratch. There are many things that can be done such as the scrapping of the mobility car scheme unless you absolutely need one. We have two family friends, retired ladies who have these cars, both are very wealthy with 6 figure bank balances etc so why are people like that entitled to a tax payer car when they can afford their own. Put me in charge and I will slash the bill by 50%, it would be easy to do.
To do otherwise breaches the trust system of money. Only believing money received in the future has value, supports the idea of debt and credit. Without debt ( and return on that debt) , capitalism fails. Ability to print money on demand eliminates debt rational ( return) so collapses capitalism by default.
Others have attested that you only need to issue debt (government bonds) if you are running s as current account deficit. You issue the bonds to pay for your expenses EducationHealthBenefitsRoadsDefenceGovernment staff and buildings PoliceFireCoastguards I’m sure there are others. Quangos etc…If you just print money whilst running a deficit you risk a lack of confidence in the currency. MMT has been shown to be a lot of nonsense because the longer you keep spending what you don’t have the higher your deficit climbs. You either have to grow the economy to reduce the debt or reduce what you are spending. Zimbabwe and other third world countries have shown this. You can end up with hyper inflation which does nobody any good and further causes a sovereign monetary and debt crisis. Reduced public spending and/or increased taxes are the only alternatives….Or are they. The Laffer Curve suggests that the lowering of direct taxes fosters higher productivity and in turn increases tax revenues. Just don’t give all the tax cuts to the billionaires or you’ll end up with Trump’s America - and nobody wants that!In conclusion if it was that easy some other bugger would have done it already. Yes… we’re all screwed 😩
I concur. Meanwhile I took one out - not to replace lending, but to simply place on deposit. Cost me a bit initially but then provided a return as interest rates increased. Paid off the balance prior to company closure. Marginal gain, but it was free money ( to the company, but not the taxpayer). Joke system in all respects imv.
