Proposal for the UK
Posted by WARREN MOSLER on January 23rd, 2009
- Immediately suspend all VAT and other national transactions taxes.
- An immediate one time 1% of GDP fiscal transfer from the national government to regional governments.
- A national service job for anyone willing and able to work to create an employed labor buffer stock for enhanced useful output price stability.
Regarding troubled banks, insolvent institutions should be taken over by government and reorganized to allow for the assets to be sold in an orderly manner and to avoid business interruption for bank clients. When this takes place, uninsured foreign currency liabilities of the insolvent institutions should all be dissolved.
Unfortunately, national budget deficit myths persist and will likely not allow this type of policy to be implemented.
On a technical level, the BOE should sell UK credit default insurance until the cows come home to get those premiums down and dispel notions of UK default risk.
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February 20th, 2009 at 3:32 pm
I’ve been interested in economics for decades and have just stumbled across you site. It’s brilliant. Congratulations on “Mosler’s Law”. I quite agree. Coincidentally I wrote a letter to the Financial Times today saying something similar: I advocated a “Worldwide money printing operation”. I also agree with a temporary abolition of payroll taxes.
Re “Proposals for the UK”, items 1 and 2 are OK. But I’m suspicious of 3. This sounds like having government act as employer of last resort. This idea is difficult and complicated: I’ve spent months wrestling with it. So flesh out your proposal, and I’ll produce some constructive criticism. For starters, why do you claim this idea is mores suited to the UK than other countries?
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February 20th, 2009 at 3:45 pm
It’s suited to most any nation.
see ‘full employment and price stability’ on this site under ‘mandatory readings’ thanks!
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