Modern Monetary Theory

Who Owns The National Debt - And Does It Matter

"It’s often said that the UK is in hock. The national debt is, according to some, going to cripple us. I have already made a video explaining why this is nonsense. We need our national debt. But implicit in this suggestion that the national debt could cripple us is another idea, which is that there must be some 'dark powers' who own at least a part of the national debt to hold us all to ransom and deny any government the power to do what it wants, whatever an electorate wants. That’s why it’ worth knowing who owns the national debt, which is what this video is about."

The UK's National Debt is Not 2 Trillion

"The reason why it’s a lie is, in the first instance, that the government cannot owe itself money, and yet £735 billion of the so-called national debt is now owned by the government, and so cannot be included in the figure for debt. And then there’s the fact that almost £200 billion of this supposed debt is actually deposits at National Savings and Investments, and to call that debt is grossly misleading. And if evidence is wanted, the government’s audited Whole of Government Accounts agree with my position, stating debt net of quantitative easing, for example."

Tax In Modern Monetary Theory: An Explanation

"Historically modern monetary theory placed too little emphasis on the role of tax in the economy. It's my belief, explained here and here that tax and modern monetary theory are intimately linked issues. That's not because tax pays for government spending: it does not. But tax is fundamental to fiscal policy in a modern monetary theory environment. And without the funding constraint that has limited tax design to date, MMT liberates tax to be an instrument for social change as well.