Seen through the MMT lens, the success of the Chancellor’s Budget would be measured against a set of criteria agreed through the democratic process in the interests of the nation’s economic and social well-being. 2018’s Budget should address ecological concerns, inequality and access to essential services first and foremost. This means addressing which resources are available, not whether the use of those resources will ‘cost too much’ or upset the balance-sheet.
Philip Hammond has announced that this budget will increase spending in some areas. But in the event of a no-deal break with the EU, he said he would be forced to tear up his plans and institute an emergency budget, while setting the economy on a “new direction”. We think a new direction is needed right now to tackle all the major problems that we are facing from climate change to the devastation wrought by austerity. The government’s combination of penny-pinching and ideological objection to using the state’s machinery to deliver good public services will have an impact that will last for generations. It’s time for a change of direction. Brexit or no Brexit, the state of the nation depends first and foremost on the government’s actions.
Will the Budget fulfil all or any of the following criteria?
• Facilitate the best use of real and available resources either goods or services both in the private and public sector to meet the government’s public purpose objectives. Has the government got the balance right between the two?
• Meet the goals set for reductions in poverty, homelessness, improving nutrition and reducing infant and maternal mortality? And if not, what real resources might have to be freed up by government through taxation to achieve them?
• Meet the needs of citizens for well-paid employment either in the private or public sector, or when necessary through a government funded, locally delivered, Job Guarantee scheme? Does that employment give them the wherewithal to live a decent life and spare income to save?
• Enable the construction of sufficient numbers of good quality and truly affordable homes to meet the housing needs of all citizens?
• Enable the development of a strategic plan to develop a top-quality education service with adequate infrastructure including schools, teachers, support staff, equipment and school canteens to provide an engaging, happy and healthy environment for children to learn?
• Ensure that our universities and colleges are fostering the skills essential to deliver public purpose – research, engineering, education and health?
• Guarantee the health of the nation from cradle to grave through a well-funded, publicly managed and delivered health and social care service?
• Provide sufficient investment in the provision of a low-cost and efficient public transport network and ensure that the road network is kept in good repair to facilitate both the needs of the public and business?
• Provide for the restoration of strategic industries to remain in the control of government?
• Ensure that the nation meets its climate targets through reducing its carbon footprint using new technologies and investing in renewable energy?
• Support agriculture by developing a plan for national food security and encourage local food production to serve the needs of all income groups?
• Deliver sufficient deficit spending in the economy to meet the government’s economic and employment targets through a Job Guarantee as well as a Basic Income (for those unable to work due to illness or disability) to meet the needs of citizens to lead a comfortable and decent life and support a healthy economy?
• Is the banking system adequately regulated to avoid a repeat of the Global Financial Crash in 2008, are levels of private debt within serviceable limits and do businesses have access to sufficient bank credit to support their investment plans?
• Deliver the tax policies needed to ensure a balanced economy that matches the productive capacity of the nation without inflation, that wealth is redistributed fairly through progressive taxation and express the government’s social and environmental goals?