Uncertainty remains about the lifting of lockdown, whether Guest Posting will return to workplaces, and when retail shops can reopen, clicking here.
How do we pay for all of this?
I am referring to the expensive government policies such as small business relief grant, bounce-back loan and self employed income assistance payments. These were all implemented by the UK in an attempt to heal the damage caused by Covid-19.
To reduce the huge mountain of debt, that has been building up over recent months the conventional wisdom states either that the government must drastically lower spending (which will harm the public services), or tax rates would have to be raised significantly (which may harm the economy).
The Observer on July 11th 2020 has published a David Gauke article entitled The only way to fund Covid-19 is through tax cuts and rises.
Gauke claimed the Government would have to cut taxes or increase tax rates to close the gap in the budget once the current economic crisis has passed.
BBC Article titled Coronavirus Costs UK July 9, 2020 concludes, “The Government is faced with three options. Increase taxes or increase debt.”
Conventional wisdom, as a result of this can sometimes be incorrect or incomplete. The conventional view was, for example, that Earth and not Sun is the central point of our solar system.
The recovery from Covid-19 is not as easy as it seems.
There are literally thousands of ways to make money
Money is not something that comes naturally.
These currencies have been created by people to assist in the trading of goods and service.
Most people think that Royal Mint produced the banknotes and coins.
It is only small.
Commercial banks like Santander NatWest NatWest are responsible for 97% of all the wealth in Britain (and in almost every industrialized nation). HSBC NatWest Santander provides loans to its customers.
This is very clear in a bulletin published by the Bank of England entitled “Money Creation to the Modern Economy” from 2015. They used this exact phrase:
Where is money coming from? The most popular form of money today is bank deposits. Money is created in modern economies by lending banks. A lender deposits money on the borrower’s account every time they make a credit. Please note that some economics texts do not use this terminology.