This is a great illustration of what's wrong with economics. We take very complex phenomena and reduce them to comically simplistic diagrams like this, that don't stand up to empirical or theoretical scrutiny, and then mock people who don't repeat our baseless, simplistic dogma.

Non-government net financial assets reach 100% of GDP in the UK money system for the first time since the heydays of the Beatles, the Stones and Twiggy.

James, our 'tax money' isn't being spent on anything. What government spends, whether it be public services or war, it creates on demand. Tax retrospectively offsets some of that new money by withdrawing funds from circulation. That process is mandated in law. Gov't spending is

This is deficit spending, btw. Courtesy of the FOMC.

The crazy economics behind Rachel Reeves's belief that freezing pensioners will be good for the economy 1/3. It will destabilize the economy and The Labour Party conference delegates should vote against it Richard Murphy Robert Peston Aditya Chakrabortty Open Labour

It is illegal for taxpayers to create their own money, all money is government money or endogenous bank credit.

IFS and OBR articles are not evidence - they are narratives that you happen to agree with. ONS, WGA and CF accounts don't support your assertions. Come back when you have evidence to support your claims.

More plainly, the UK has a sovereign currency. No need to feign dependence on the rich. The British government can source its own financing internally. Indeed, there is no other way. papers.ssrn.com/sol3/papers.cf…

Re-liked. ❤️

You can’t opt out of dependence on those not yet born—you can only choose how to share risk/spread support. Whether it’s social security, moving in with your kids, or needing people to enter care work so you can employ them, you can’t get old without relying on the young

“Argentina’s poverty rate has surged to 52.9 per cent under its government’s austerity programme, in a warning sign for libertarian President Javier Milei as his popularity begins to falter…the worst in two decades…3.4mn Argentines have fallen into poverty this year.”

Do you know how hard it is to publish a paper critical of neoclassical economics anywhere that isn't a heterodox econ journal? Very. Do you know how hard it is to get a university to offer a Masters in MMT and ecological economics? Very. The world needs a lot more of both.

The libertarian reptiles are crawling out of their vivaria to blame 'socialism and deficits' for Argentina's woes. The root of the problem is a predatory oligarchy dollarising debt, buying bonds and siphoning their money out of the country, details here michael-hudson.com/2018/07/argent…

🚨 BREAKING: Labour will raise uni tuition fees to a whopping £10,500 per year, reports the Times. In 2020, Starmer promised to scrap tuition fees. (Via @TheTimes)

Yes

Why Britain can’t afford Rachel Reeves by Dr. Steve Keen 👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻👇🏻

A government surplus does not imply a growing pile of cash the government can spend later - it involves simply the deletion of dollars from private bank accounts. That is all.

The definition of Treasury Brain. Scrapping big infrastructure projects that could actually produce the growth and productivity we've lacked for 14 years, in order to meet the same arbitrary fiscal rules that helped stop us growing in the first place theguardian.com/politics/2024/…

I'm starting to think that workers in the UK would have been better off with the trickle-down economics of Liz Truss. What Labour plans now makes absolutely no sense in economic terms. And bad economics normally is bad politics, too. #redausterity theguardian.com/politics/2024/…

Further austerity can never be the answer. Our nations finances are *not* the same as a households. Tonight was the launch of "Finding the Money" with the brilliant Stephanie Kelton. Thanks so much to UCL Institute for Innovation and Public Purpose for inviting me to join the panel. findingmoneyfilm.com