Skip to main content
General Strike Anniversary
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.
Similar stories
WAY FORWARD: People's Assembly Against Austerity protest in central London on June 7 2025
Politics / 11 July 2025
11 July 2025

RICHARD BURGON MP points to the recent relative success of widespread opposition to the Labour leadership’s regressive policies as the blueprint for exacting the changes required to build a fairer society

STUC General Secretary Roz Foyer speaks to lecturers and other university staff at a rally on Buchanan Street, Glasgow, September 19, 2023
Voices of Scotland / 8 July 2025
8 July 2025

Ahead of next year’s parliamentary elections, ROZ FOYER warns that a bold tax policy is needed to rebuild devastated public services which can serve as the foundation of a strong, fair economy

Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, May 15, 2025
Economy / 22 May 2025
22 May 2025