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They don't need to increase taxes to do that. They can print as much pounds as needed to put all the available labor needed to improve services and infrastructure as fast as possible. Faster than if they had to tax the money first. I don't know if they'll do that though. :D
No they can't, that creates hyper inflation and ruins the economy. If that was an option, why do you think not every government does that instead of taxes?
I believe this is false and it misunderstands how the system actually works but I don't have the energy to go too much into it. Briefly:
Simply consider the case where you have removed X pounds of investment by having those pounds moved to another country. This is deflationary. Replace those X pounds with new pounds in the UK. This covers that deflation. An inflationary effect might occur in the country where the original pounds went to be spent. If the money is instead not spent and just stored in various unproductive assets, then there's no effect in that country either.
Additionally, more money does not necessarily mean more inflation, let alone hyperinflation. Look up the velocity of money equation. There are a few more variables that interplay with the supply of money. In short, if you have the real resources needed in a part of the economy where you want higher production (production capacity, labor, metal, brick, oil, electricity, etc.) you can spend some amount of new money that will result in increased production without incurring inflation. This is standard economics, nothing controversial about it.
Not only it's an option but governments have always spent new money as well as taxed existing. In fact they cannot tax before spending since they create the pounds in circulation. They cannot tax pounds from citizens who don't have them. I know this isn't what's being promulgated by the conventional econ 101 wisdom, but if you think about it, it's an obvious fact. There's plenty of examples where governments have done public investment by spending new money into the economy which did not result in inflation, let alone hyperinflation.
I suggest watching or listening to one of Randall Wray's intro to MMT lectures, especially the longer ones that go into the nature and origins of money. They're eye-opening.
Every attempt at solving a state deficit by just printing more money has resulted in inflation. I don't have to read anything, I have more than 30 years experience and interest in national economics that show a perfectly 100% predictable picture that this would be 100% certain to cause inflation.
You can't make theory circumvent reality.
I didn't say anything about solving a state deficit although that's another interesting topic. Public debt being private savings and all that. What I said has been demonstrated plenty in reality. I'm aware that plenty of economics theorists and practitioners reject these ideas by assigning that something is reality while ignoring other parts of reality that don't match. That said more and more come on board. I've had this conversation before. 🥹 All good.
That part is true.
"printing" money happens very very often. The US constantly prints money AND increases it's debt yet the dollar stays strong. You have to remember value of a currency is imaginary, it's just a contract where we agree X is X and Y is Y.
While yes you can devalue a currency by printing money, you can also increase its value by strengthening the system it's printed into. If we print money to build and improve, the UK becomes more desirable and therefore it's currency more valuable despite it's increased monetary supply.
It's alot more complicated than Print more worth less. Hell I expected high inflation after COVID due to increased printing, and while inflation did happen, it was not for that reason, it was pure greed.