Why should tax payers pay off citizens debt?

2 min video looking at the unintended consequences of governments giving m money to it citizens — https://youtu.be/e_tQtkpAiF8

As they say; “it is easy to spend someone else money” and that is what governments have been doing and in doing so have caused some potentially unintended consequences.

The UK government introduced furloughing i.e. paying workers to stay at home due to the covid-19 pandemic at an estimated cost of £14 billion a month

However, partly due to lockdown restrictions of not being able to go to the local ‘rub a dub dub’ (pub) restaurant or hairdresser, Brits in JUST April repaid £7.4 billion of their outstanding debts, the highest on record ever.

The Paradox of Thrift — as hypothesised by Keynes when people save and do not spend resulting in lower economic growth would appear to have arisen as the UK economy shrank by over 20% in April

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From a survey from money.co.uk the average household in the UK has repaid £2,879 during lockdown

Did the chancellor of the exchequer in the UK want to pay off citizens debts while blowing a hole in the government’s finances? Surely a better solution would have been to pay the utility bills, rent, mortgages not just giveaway cash?

Although if you find this state of affairs galling as a tax payer spare a thought for the US tax payers who have paid between 1% to 5% on the $2 trillion that Uncle Sam has pumped in to the US economy by giving those lovely bankers another massive windfall, why?

So, of no surprise that governments and central banks are looking at alternative ways control and dispense cash to its citizens. Hence the interest in CBDC. Having derided and understandably been highly suspicious of the likes of Bitcoin and other Crypto currencies that promised a solution to by-pass banks and usher in a new era of decentralisation. Governments are turning to the Blockchain technology, the tech behind Cryptos and seeing how the technology can help not destroy the financial ecosystem.

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#Blockchain #Crypto #Serenity ##payments #banks #Money #cash #CBDC #Bitcoin #Debt #Furlough #Keynes # bankers #covid-19

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#DigitalAssets#Tokens #ChairmanGemini #Fintech #Blockchain #Assetmanager #Speaker #DigitalBytes #Economics @Teamblockchain Twitter:@jonnyfry175

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