MP’s poll – on the money, or perhaps not

Positive Money today released the results of their latest poll of MPs in which they establish that 85% of MPs don’t have the correct knowledge of where money comes from. (Video link here). The result is, quite honestly, no surprise.

What IS a surprise is that 70% of MPs think that only the government has the authority to create new money.

I draw two conclusions:

1. that Positive Money’s proposals that money should be created by a government/bank committee are so near to what 70% of MPs think happens already that there should be no difficulty in legislating for this… (even if, personally I don’t entirely agree!)

2. that 70% of MPs must include a lot of Conservatives and of Labour ‘Austerity Lite’ MPs.

So why are they lying to us when they tell us that ‘there is no money’ or ‘money is short’ when they themselves believe the government has the right to create, not just some, but all new money?

What, exactly, is stopping them creating more?


  1. Charles Adams -

    They might say that they believe in the money tree but it is not magic. Their favourite line – that we cannot just shake a magic money tree and solve all your problems – is true. But not being able to try to solve your problem because there is no money tree is false.

    The more troubling question is why does the current government not want to improve health and education by investing more? Pure ideology I guess.

  2. Peter May -

    It seems to me there is a logical inconsistrency between saying there is no money but acknowledging you have the right to create it. And create all of it.
    I think we should keep it simple!
    So the reply must surely be we cannot create it because …..
    we want to give the people shorter, more brutish lives…
    we’re keeping it all for the toffs….
    we’ve sent it all to a tax haven….
    We can then tell them that as the Private banks create 90% odd we’ll stop them doing so much of that and the government can create some instead and invest in the health service, which, as we are substituting some of what would be created privately, it will by definition, not alter inflation.

  3. Graham -

    One of the frustrations of being a supporter of an independent Scotland is that we have no money tree. We have a set disbursement from WM and have to produce a balanced budget. Two consequences of this, one obvious, is that the SG cannot increase the budget for, say, the NHS without removing funding for something else. The second is that the SG (usually referred to as the SNP) get all the blame for not spending more on x, y or z, whereas the real culprit is WM.

    It’s a matter of priorities, so while the opposition continually carp that not enough is being spent on the NHS or whatever, they never say which part of the budget should be cut to pay for it: free prescriptions, free university tuition fees, offsetting the “bedroom tax”, free personal and nursing care, free sanitary products (coming soon) etc?

    1. Peter May -

      As a supporter of better together – and I believe that really! – I think the Scottish Parliament should certainly set up their own independent currency NOW. (If Brexit happens potentially there is a currency in place)!
      We can be together and independant financially as we are now both (together) financially independent in the EU.
      To be honest I think Scottish independence, which would be very expensive for both countries, as Brexit is proving, would disappear if Scotland really knew that Scottish new pound notes were not authorised by the Bank of England (ironically started by two Scotsmen) and could be produced by a proper independent – not sham – Bank of Scotland. Nicola Sturgeon, quarter English, could please note…

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