RaymondPierreL3<p>There is only one way out of this mad run-away market-driven corporate capitalism and that is to ditch the debunked <a href="https://aus.social/tags/neoliberalism" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>neoliberalism</span></a> which permeates all economic debates. As Prof. Richard Murphy writes:</p><p>“…one of the most persistent and damaging myths in economics is the so-called household analogy. This is the idea that the government's finances are like those of a household, meaning that it must "live within its means", balance its books, and cannot spend more than it can tax or borrow, with that borrowing itself being constrained by a so-called "fiscal rule", of which there are no such things.”</p><p>Prof. Murphy describes the function of <a href="https://aus.social/tags/GovtExpenditure" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>GovtExpenditure</span></a>, the role of <a href="https://aus.social/tags/Taxation" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>Taxation</span></a> and who wields power (holds the levers - separation of fiscal and monetary responsibilities aside) in an economy. An understanding of these basic principles is key to any meaningful discussion on progressive policy agenda aimed at the social good and the essential needs for strong democratic institutions. </p><p><a href="https://aus.social/tags/FiscalPolicy" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>FiscalPolicy</span></a> <a href="https://aus.social/tags/FiscalBudget" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>FiscalBudget</span></a> <a href="https://aus.social/tags/BoE" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>BoE</span></a> <a href="https://aus.social/tags/EconomicTheory" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>EconomicTheory</span></a> <a href="https://aus.social/tags/BalancedBudgets" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>BalancedBudgets</span></a> <a href="https://aus.social/tags/TaxSystem" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>TaxSystem</span></a> <a href="https://aus.social/tags/CorporateCapitalism" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>CorporateCapitalism</span></a> <a href="https://aus.social/tags/EatTheRich" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>EatTheRich</span></a> <a href="https://aus.social/tags/JoinYourUnion" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>JoinYourUnion</span></a> <a href="https://aus.social/tags/Antifa" class="mention hashtag" rel="nofollow noopener" target="_blank">#<span>Antifa</span></a> </p><p>Read more:</p><p><a href="https://www.taxresearch.org.uk/Blog/2025/08/11/why-the-household-analogy-in-economics-is-wrong/" rel="nofollow noopener" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">taxresearch.org.uk/Blog/2025/0</span><span class="invisible">8/11/why-the-household-analogy-in-economics-is-wrong/</span></a></p>