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All government spending in the UK is funded by government borrowing. That's how the system has worked for 150 years or more. Every penny spent is initially bor
by neilwilson 4y ago
All government spending in the UK is funded by government borrowing. That's how the system has worked for 150 years or more.
Every penny spent is initially borrowed. Then as it bounces around the economy tax is raised by the induced spending flow.
It's only if people save rather than spend from that that the 'borrowing' shows up on the books.
Whether there will be any more borrowing show up depends how much people spend and how much people save.
The problem is the deliberate misunderstanding of what government borrowing is, put forward by those who want to see government spending stopped.