I keep hearing people complain that the ‘mainstream media’ does not understand economics and that we’re talked down to as if everything must be explained as if the economy is a household. In this thread I explain all you (and they) need to know. Economics in one thread then....— Richard Murphy (@RichardJMurphy) December 12, 2020
We've just had the budget so there's lots of talk about bolstering the economy, about supporting those who have lost their jobs as a result of the pandemic, about tax rises and what money is or isn't available when you shake the magic money tree. Lots of people talk about needing to pay back this deficit like you have to pay the bank back if you're overdrawn or have taken out a loan. Except governments don't quite run that way where money is concerned. If you're at all interested in how government economics work and how governments create and distribute money, then I highly recommend you read the above thread by Richard Murphy. You can read it on Twitter or via Thread Reader where it reads more like an article. It is fascinating!