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.
Modern Monetary Theory: Real Economics 
Peter,
Well done. A very easy to understand and astute observation! I wish we could have someone like you on TV to demolish the nonsense from idiots like Osborne, and Balls is no better, about Governments being like households who have to live within their means etc etc. You’d slaughter them!
When you’d done that you could have go at those business types who say things like “If I ran my business like this government runs the country, I’d be bankrupt and closed down within a week etc etc etc….”
“Living beyond our means” was on loop from the Opposition (now Government) here in Australia during our recent Federal election.
And it’s still being rehearsed by the new Treasurer as he goes about softening the brains of the electorate in readiness for his antipodean Osborne impersonation.
Or perhaps it’s Obama: “After all, small businesses and families are tightening their belts. Their government should, too.”
Politicians don’t make this stuff up. They get their lines pre-packaged from conservative economists and their ironically named “think tanks”.
I like Professor of Economics Bill Mitchell’s bleak view of things:
When propositions – such as the Earth was flat – are shown to be incorrect constructions of reality the ideas cease to be knowledge and instead become historical curiosities which allow us to benchmark how far our education systems have taken us. However, the same cannot be said for my profession.
Thanks for that quote. It gave me the idea for my next posting !
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