Governments aren't like households

Politicians keep telling us the government must “live within its means” like a household. That idea is wrong. It is also dangerous.

In this video, I explain why a currency-issuing government is fundamentally different from a household, how money is actually created, why deficits create private surpluses, and how the household budget myth has justified austerity, weakened public services, and cut social security in the UK since 2010.

We need honest economics, not myths that limit democratic ambition. Real limits are resources, skills, energy, and environmental capacity, not money.

Understanding this is essential if we want an economy based on care, not the politics of destruction.