Mythbusting
A great deal of what is said about the economy is either wrong, or mumbo-jumbo. The Mythbuster series is being published on the Tax Research UK blog to tackle the issues that cloud understanding of our economy.
Introduction
It has become very apparent as the coronavirus crisis has developed that there is a massive need for better and deeper understanding of how economies work. An initial request for feedback on the idea of publishing a series of ‘mythbusters’ to tackle areas where there is very often misunderstanding on economic issues received very favourable feedback. An appeal for suggestions then resulted in a draft list of myths to be addressed. These were grouped under the following headings:
- Banking myths
- Economic myths
- Modern monetary theory myths
- Borrowing and debt myths
- Tax and spend myths
- Inflation myths
- Austerity myths
- Green myths
- Inequality myths
- Tax abuse myths
These will be developed over time and will be linked here as they are produced.
Format
Each myth is addressed under a series of headings:
- What the myth is
- Some quick replies, intended to be rapid rebuttals for use on twitter, in discussion or social environments
- A more detailed response
- Evidential support, including data when appropriate
The format is a little flexible, depending upon the issue being addressed.
Borrowing and debt myths
Mythbusters tackling these issues include:
- Mythbuster: the national debt
- Mythbuster: We have to repay the national debt
- Mythbuster: We can’t afford the interest on the national debt
- Mythbuster: The government has to balance its budget
- Mythbuster: The UK national debt is heading for 100% of GDP
