Monday, 18 October 2010

Letter by BNP candidate for City of Durham, Ralph Musgrave, in The Northern Echo today. I wonder how many of those who call BNP members "thick racists" can follow what's being said here and in the linked blog article...

ANDREW Allison (HAS, Oct 13) objects to taxes being raised as part of my “cut the national debt” proposal (HAS, Oct 9).

Point taken. My previous letter was not well worded, so I’ll try again.

We could stop the debt rising simply by funding the deficit with new or “printed” money instead of extra national debt.

And that is not a new idea: Nobel Prize-winning economist Milton Friedman suggested something similar.

That “money printing” element on its own would be too inflationary, thus it needs tempering with a deflationary method of debt reduction: raised taxes.

As long as the above inflationary and deflationary effects cancel out, no one need be any worse off, even though some would pay more tax – ie, as long as extra tax is raised just from those who benefit from the money printing (mainly the better off) the net effect would be neutral.

I’ve explained this in more detail in a blog post of mine, entitled “National debt reduction for dummies”, which is easily accessed via Google.

The word dummy is a reference to central bankers and finance ministers the world over, who are not too clued up, rather than to readers of The Northern Echo.

Ralph Musgrave, Durham.

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