Disclaimer: This is a user generated content submitted by a member of the WriteUpCafe Community. The views and writings here reflect that of the author and not of WriteUpCafe. If you have any complaints regarding this post kindly report it to us.
image credit: Accotax.co.uk

1. THE PROFITS FROM MONEY-MAKING

Paper currency, such as £10 notes, is still printed by the Bank of England. The government makes money on every single bank note it publishes because it only costs a few cents to print a £10 note. This profit on newly produced money totalled £18 billion between 2000 and 2009, which was enough to pay the wages of about 90,000 nurses throughout that time.

2 Interest rates on the national debt.

The government must borrow far bigger sums of money to make up for this lost revenue because the banks currently receive the profits from the creation of money instead of the government.

3. DEFICIT: CRISES AND RECESSIONS COST

When the 2008 financial crisis struck, thousands of individuals lost their jobs, consumers cut back on their spending, and business sales decreased. As a result of fewer people working and smaller corporate profits, the government was able to collect much less tax revenue.

Login

Welcome to WriteUpCafe Community

Join our community to engage with fellow bloggers and increase the visibility of your blog.
Join WriteUpCafe