3 Ways The Government Can Get More MONEY without Taxes

A look at three possible ways for the government to get money without taxes or borrowing. How does money creation work and what are the possible costs?

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[feff]

i think the issue is for the average person covid showed that there is a magic money tree

[patarciepaul]

There isn't a magic money tree apart from for PPE contracts, test n trace and fraudulent bounce back loans.

[brianprice]

This man knows his economics and choices to be made, why do these simpletons, make glib, stupid comments, why resist information, hes not a politicians

[christopherspriggs]

There seems to be a magic money tree for expensive projects that never have an end result.

[drscopeify]

The problem with money creation is timing, during COVID the world was creating money in practically all countries and now we see a re-balance. The issue is that money was spent on things like stimulus, supporting existing businesses and paying for COVID treatment, the issue is that this is not the most ideal economic use of money and yet you can only create money when the rest of the world is doing the same to maintain stability of the currancy. So it is a bit of a trap, you can only create money when everyone else is doing so as well but in such cases you are in an emergency and spending money that is not focused on what matters economically for the future rather supporting the existing system as it is today, as an event is unfolding. A comical yet surreal reality.

[plerpplerp]

The UK government cannot run out of money in the same way individuals or businesses can. Governments that issue their own currency, like the UK, can always create more money to meet their financial obligations. This concept is supported by Modern Monetary Theory (MMT), which argues that countries with sovereign currencies can never truly run out of money.

[aaronogden]

There’s a magic money forest when the banks are in trouble.

[philipwood]

Big part of inflation started before the energy prices went up. Monetary policies (printing) caused.

[lonevoice]

I agree with much of this. It should be noted however that the 3 examples of countries with hyperinflation had a lot of national debt in a foreign currencies, most notably US$, and that makes a huge difference.

[ollietizzard]

This was an excellent video. I feel that schemes like People's Quantitative Easing would be best served by investing in energy. Energy underpins everything in the economy and so many industries are throttled by energy being so expensive in this country, which in turn slows output and prevents all that great free money from being used for worthwhile production and instead just adds to inflation

[HGWaze]

Yes! Great video. Send this to anyone who says anything about "serious economists."

[jarirutanen]

Deficit spending creates new money i.e. bank reserves. The so called "borrowing" is actually interest rate management i.e. it sets the interest paid on the reserves.

[RahulRaj-tore]

I honestly don't understand why you're discussing these dubious schemes. There are plenty of options like Eledator and similar ones that are fast and profitable.

[james]

I would be interested to see a video on the effects of going cashless. I know stats might be hard to come by but I recently read at least £100Bn a year is lost to the treasury. I look around and see on almost every take away shop “cash only” signs and have even been asked by one that did take cards that he can avoid the tax if I pay in cash. At Tesco today there was a long queue of tradesmen at the one open till operator when the self serve ones had no queue. I guess they’re paid in cash and needed to spend it. Big big money for the country surely if we went cashless.

[johnpritchard]

Great video. I have a question. Is there a limit on the amount of money the commercial banks can create? If so what are they?

[benjamineprg]

Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,

[vvwalker]

You should do a video on capital shallowing created by immigration and its affect on productivity. You elluded to it in your housing video re money spent on rent/mortgages/deposits but population growth has also outstripped business investment and infrastructure development. This, along with Brexit, has crushed productivity, similar situations are being experienced in Canada, Aussie and Canada

[MegaCooliam]

These are great. But i thought you were going to mention a soverign wealth fund? Germany is set to create one at the end of this year too!

[detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊

[roberthuntley]

If the BOE stopped paying interest on bank reserves, the bank's profits would reduce leading to reduction in the taxes paid by them and their dividend receivers so its not a completely cost free option.