When the economy is powering along, when investment and employment and wages are high, when interest rates are low, and banks are supporting the real economy, not just gambling on property price rises – then hey presto, the government’s books ‘balance’. When the economy is weak, when investment falls, and employment is low, or insecure, or low-paid; when private indebtedness and real rates of interest are high and the finance sector out of control – then government revenues from taxation will fall, and the government’s books will not balance.Ann continues to inspire me with her insights into how money and the economy works.
14 Feb 2018
Ann Pettifor has a new blog up: Do tax revenues finance government spending? It includes this memorable quote about balancing the books: