3 ms·

Public spending doesnt make countries or people rich. Its funded from taxes, which rely on economic growth, which we've had very little of since the 2008 recces

Public spending doesnt make countries or people rich. Its funded from taxes, which rely on economic growth, which we've had very little of since the 2008 reccession and banking meltdown.

ForHackernews 2y ago
Wise public investment can absolutely spur growth: building trains, harbors, ports, school, hospitals, The Internet, etc. will pay off in spades and make society wealthier.
- drumhead 2y ago
  Economic growth isnt that easy. "Build stuff and we'll be richer". We've grown as fast as France and faster than Germany over the last 5 years, but im sure they've spent more than we have on infrastructure.
  - mempko 2y ago
    It's not enough to look at averages. When growth happens, someone benefits. If you have a very unequal society, which the U.K. is, that benefit goes to only a few people. On paper it looks good, but the lived reality is different.
retrac98 2y ago
Important detail - taxes don’t really fund anything. They’re just a means to control inflation. The government spends money and then taxes it back, not the other way around. The point here is tax revenue isn’t a blocker to smart investments in public services… Or at least it shouldn’t be.
mempko 2y ago
The money you have to pay taxes comes from public spending. The government has to spend first before collecting taxes, that's how money works. The money to buy government bonds comes from spending too. In fact, if the government didn't spend, there would be no money. When the government spends more than it taxes, it allows people to save and invest. When it restricts spending, people get into debt and can't earn a living. This is basic accounting. Watch this short video about the subject by the late David Graeber https://www.youtube.com/watch?v=LxJW7hl8oqM https://www.youtube.com/watch?v=LxJW7hl8oqM

3 ms·

Public spending doesnt make countries or people rich. Its funded from taxes, which rely on economic growth, which we've had very little of since the 2008 recces

by drumhead 2y ago

Public spending doesnt make countries or people rich. Its funded from taxes, which rely on economic growth, which we've had very little of since the 2008 reccession and banking meltdown.

ForHackernews 2y ago
Wise public investment can absolutely spur growth: building trains, harbors, ports, school, hospitals, The Internet, etc. will pay off in spades and make society wealthier.
- drumhead 2y ago
  Economic growth isnt that easy. "Build stuff and we'll be richer". We've grown as fast as France and faster than Germany over the last 5 years, but im sure they've spent more than we have on infrastructure.
  - mempko 2y ago
    It's not enough to look at averages. When growth happens, someone benefits. If you have a very unequal society, which the U.K. is, that benefit goes to only a few people. On paper it looks good, but the lived reality is different.
retrac98 2y ago
Important detail - taxes don’t really fund anything. They’re just a means to control inflation. The government spends money and then taxes it back, not the other way around. The point here is tax revenue isn’t a blocker to smart investments in public services… Or at least it shouldn’t be.
mempko 2y ago
The money you have to pay taxes comes from public spending. The government has to spend first before collecting taxes, that's how money works. The money to buy government bonds comes from spending too. In fact, if the government didn't spend, there would be no money. When the government spends more than it taxes, it allows people to save and invest. When it restricts spending, people get into debt and can't earn a living. This is basic accounting. Watch this short video about the subject by the late David Graeber https://www.youtube.com/watch?v=LxJW7hl8oqM https://www.youtube.com/watch?v=LxJW7hl8oqM