LadyJasmine said: Now I hear of a wacky idea in the UK that the government be lent money interest free to build infrastructure? Using that logic why not just print money and make it out of thin air ? |
Well, reality check: money IS made out of thin air.
https://en.wikipedia.org/wiki/Fiat_money
Basically the banks create money if you get a credit and the money is destroyed if you pay the credit back. The whole systems starts off by the central bank giving banks credits.
So using fiat money to finance infrastructure instead of financing grwoing debts seems not completely irrational to me.