Could Andrew Law, head of Caxton Associates, one of the world’s oldest and biggest macro hedge funds (Report, March 7) explain why the UK government needs to borrow its own money, no matter how low the cost, in order to “fund targeted projects that stimulate productivity and growth”.
The government creates money by instructing the central bank to credit private bank accounts. Its only constraint is the real resources available for it to purchase. The resource required for investment in “skills and education” is labour. All government has to do is offer the right price.
Is Law frightened of the consequences for the ruling party if Labour were to dispel the deficit myth, as explained in Stephanie Kelton’s bestseller?
The next Labour party manifesto could include all the promises made in 2019, and more, with its knowledge of the power of the public purse.
Carol Wilcox
Christchurch, Dorset, UK
Letter: A Labour government can ditch the deficit myth
Pinoy Variant