Skip to main content
The Morning Star Shop
Shattering the tax and spend deficit myth
Modern monetary theory has been gaining momentum and popularity in recent years. CHRIS WILLIAMSON takes a look at the arguments

WE NEED a radical rethink on the tax and spend deficit myth.  

Economic commentators and politicians of every stripe perpetuate the delusion that public spending is paid for by governments taxing or borrowing and that fiscal deficits are something to be concerned about. 

We saw it again last week in the discussion around the mini-Budget.

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
STOKING CONFLICT: US soldiers load pallets of weapons and ex
Opinion / 3 March 2023
3 March 2023
Arguing that the war has always been a proxy war between Nato and Russia, CHRIS WILLIAMSON argues that opposing the US-led imperialist alliance is key to avoiding a global conflagration
Chris Williamson
Opinion / 22 September 2022
22 September 2022
Announcing his intention to join the rival Socialist Labour Party established by Arthur Scargill in 1996, CHRIS WILLIAMSON argues that the time is now right to advocate a mass vote for parties that run against Starmer's Labour from the left
Features / 8 July 2021
8 July 2021
Questions remain unanswered over the government-funded Integrity Initiative. What have ministers got to hide, asks CHRIS WILLIAMSON
Features / 22 October 2020
22 October 2020
Of all the mainstream media, it is the institution priding itself on its liberal values and progressive heritage that has carried the worst betrayal against the whistleblower of the century. It must listen to our protests now — before it is too late, writes CHRIS WILLIAMSON
Similar stories
MONEY TALKS: A general view of City workers on Bank Street a
Full Marx / 6 April 2025
6 April 2025
Labour’s fiscal policy is already in trouble. But simply printing money is not a solution, says the Marx Memorial Library and Workers School
Prime Minister Sir Keir Starmer during a reception to celebr
Editorial: / 20 March 2025
20 March 2025
Features / 23 January 2025
23 January 2025
Britain’s first woman Chancellor delivers the same old fudge, as Labour’s commitment to economic orthodoxy, seen throughout its history, always betrays working people, writes KEITH FLETT
Chancellor of the Exchequer Rachel Reeves at the Confederati
Features / 14 January 2025
14 January 2025
Instead of responding to changed circumstances by adjusting policy, Reeves is using fiscal ‘rules’ as an excuse to force government departments to make even deeper cuts than she had already flagged, says CLAUDIA WEBBE