Friday, 13 October 2017

Idiot argument of the day.

While many of his points are sound, Mark Littlewood jumps the shark with this:

...for example, try to imagine government food vouchers being redeemable at McDonald’s.

??? The government issues food vouchers all the time. They are coins and notes, or their electronics equivalent, redeemable in McD's and just about anywhere else.

9 comments:

Steven_L said...

I tried one of the more upmarket 'signature collection' burgers at maccy d's for the first time the other week. It was really good. Comes with a small portion of fries and a coffee for under six quid and the whole meal is only about 1,000 calories. Gave me a lot less wind than a KFC does too.

Mark Wadsworth said...

SL, I use the £1.99 vouchers from The Metro.

Dinero said...

The government does not ''issue food vouchers...notes all the time''
If it did do that, the interest rate would fluctuate wildy during the day.

Mark Wadsworth said...

D, you are labouring under the delusion that "money" is a real thing and that the amount of "reserves" is fixed.

Dinero said...

No delusion at all.

The amount of reserves is in fact fixed. It is fixed by BoE interest rate policy.
Once that is decided it is maintained by selling and buying bonds. Government spending and taxing does not change the quantity of reserves, it moves reserves between the reserve accounts of banks.

Mark Wadsworth said...

D, what are these magical "reserves" you speak of? Your explanation is about as wrong as it is possible to get.

Dinero said...

Reserves is the term for deposit accounts held by commercial banks at the Bank of England. They are not magical, my explanation is correct. The explanation can also be found on the UK Debt Managemant Office website.

Lola said...

I think he should have added an 'only' in that statement. In that sense givernment food vouchers are a special type of money that can only be used to buy food (and booze. Hopefully. You gotta take the edge off somehow. And of course the fodd voucher purcase of booze wpuld only cost the government the net before tax price win win.)

Mark Wadsworth said...

L, the government also prints special 'housing vouchers' which can only be spent on the rent for one particular home, called 'housing benefit'. This is clearly the worst kind of benefit.

As to 'spending all your welfare payments on booze and fags' that is nonsense as you suggest. In truth you'd struggle to spend more than ten percent of your welfare payments on booze and fags because it's about 90% tax (duty and VAT). So in effect, the government pays £70 a week benefit to non-smoking, non-drinking welfare claimants and about £7 to smokers/drinkers.