How The Government Can Afford Its Promise To Pay
Written by Econintersect Guest
– this post authored by Richard Murphy, Tax Research UK
In a previous video I have explained that for fifty years all that has given money its value is the government’s promise to pay. This promise is honoured by the government accepting the money it creates in settlement of the tax that people owe. But how can anyone be sure that the promise will work? The answer is provided by what is called the multiplier effect.
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