Neoliberal Myths

Once the Tax Research Glossary is up and running with sufficient entries to make it useful the next issue that I intend to tackle is the myths that underpin neoliberalism.

Without in any way seeking to be exclusive these might include:

There is money in the bank
Banks lend out other people's money
Tax pays for spending
Government debt has to be repaid
Growth is the be-all and end-all of the economy and nothing else matters
Austerity is the right response to economic downturns
Public services are black holes into which money is thrown
Government spending can't add to growth
Money creation is bound to lead to inflation
The government must balance its books
We can't afford pay rise during inflationary periods
Profit is a measure of anything useful
Government is like a household
There is no such thing as society
There is only taxpayer money
Our grandchildren will have to repay our debt
The national debt is a burden
We can no longer afford the NHS
There is no alternative.
The right (Conservatives, Republicans, etc) are fiscally responsible and their opponents are not.
Increasing public sector pay leads to a wage-price spiral.
There is a free market, and cutting regulation (“red tape”) will always improve its functioning.
The Bank of England is independent of government.
Cutting taxes paid by the wealthiest will ultimately improve the position of the poorest.
A larger public sector is bad for the economy
There is no magic money tree
The private sector is crowded out by the government
Markets act rationally and efficiently, on perfect information, with consistent self-interested goals, and always clear.
Economic equilibrium exists in the real world.
Inequality does not matter (so we can be relaxed about some people getting filthy rich).
The self-made man (or woman).
The conditions of your life are down to you and you alone.
The wealth of one person has no bearing on the poverty of another.
Government is dependent on markets. We can't have healthcare or education etc without private sector wealth creation.
The purpose of life is pursuit of success in the market place.
Everyone is a self-interested, self-maximising economic being.
Freedom equates to unfettered consumption.
Neoliberalism frees people from bureaucracy.
During austerity ” we are all in it together".
The “Investor” is king.
Savings are investments.