Daily Archives: January 26, 2014

The Government isn’t living beyond its means!

All Governments which, together with their supposedly, but aren’t, independent central banks  issue their own currency have to do just that. ie issue currency. Currency consists of the IOUs of the government, and without which modern society could not function. Governments have to issue more than they receive back in taxes. It is a logical, or arithmetical, impossibility for them to do otherwise.

It can be argued that taxes are too high, or inflation is too high, or the resources of society should not be ‘wasted’ on the poor and unemployed but that is not the same as government, or society, living beyond its means. It is a readily observable fact that society, in most western countries, is living at less than its means. Industry is working at well below full capacity and many workers are kept in a state of enforced idleness who could, otherwise, be adding to the general means.

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