The Prime minster (Theresa May) keeps cutting things like education and healthcare. If she wins the election she plans to cut more. But my question is: where is the money going to? Do the MPs keep it? Does it go to another department?
Where the UK finical cuts going?
- Posted:
- 3+ months ago by dp-lithium
- Topics:
- plan, election, minster, prime, education, question, healthcare, uk
Details:
Answers (1)
You need to investigate what money is. It does not have to be something you can hold in your hand. Lots of people have discussed exactly what is or is not money and there is no single answer.
At this time, all governments are financed by central banks. A central bank does not "create" money, it only says "Yep, you've got money." The government then taxes the people to retire the debt created by the central bank. The tax is never enough and the difference causes prices to rise and that is inflation. Creating phony money is inflation. The rising prices are only a symptom of inflation.
So you are asking something like "Where does a thought go if you don't think it?" Cutting one thing from the budget does not free up money for something else. And yes, this process always leads to collapse. In the past it has always led to collapse within forty years, but this time around, in the USA at least, it has been dragging on for forty six years since Nixon abolished gold backing in 1971.