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Where will all the money come from?
Fedupandpoor · 21/03/2020 13:48
Where will all the money to support businesses and buy beds and respirators come from? Is there a disaster fund that the government can draw from or will it be loaned from the Bank of England?
LittleRen · 21/03/2020 13:49
They will print money as such, and claw it back in taxes etc over the next twenty years
ChrissieKeller61 · 21/03/2020 13:49
It’s always been there they’ve just chosen not to give it to you
BonnesVacances · 21/03/2020 13:51
The chancellor was asked that in the press conference yesterday. He answered about gilts or something. I didn't understand it myself, but I'm sure many people did!
TheMemoryLingers · 21/03/2020 13:53
It's borrowed - we'll all be paying it back through taxes for years to come. I'm not complaining, but we all need to prepare for this.
SinkGirl · 21/03/2020 13:56
I’m trying not to think about the horrific austerity measures and public services cuts they’re going to push on to us after this. The spending is necessary of course, it’s the cost of it I’m worried about.
babychange12 · 21/03/2020 13:58
I was thinking the same as well
It will take forever to pay it all back 
enjoyingSun · 21/03/2020 14:09
Won't it just get added to the national debt?
en.wikipedia.org/wiki/History_of_the_British_national_debt
Which we'll then pay interest and repayments on via taxation for years.
en.wikipedia.org/wiki/Gilt-edged_securities - I think Gilts are a way of leading money to the government - a loan - and tend to be thought of as very safe - well ones to UK governments.
PegasusReturns · 21/03/2020 14:11
We’ll be paying it back through a mix of tax and future cuts for the rest of our lives
Metoyoutoo · 21/03/2020 14:31
We will pay it back through tax and if anyone complains, they will be idiots
marinintheuk · 21/03/2020 14:41
Your children and their children will be paying it back forever !
Hoggleludo · 21/03/2020 15:47
Just out of curiosity
Why can't we just print it?!? Print more than we normally do?
Can't we just make it? (Sorry if this is a stupid question). I mean why do we have to pay it back if we can just make it?
TheMemoryLingers · 21/03/2020 15:51
Because it has to be backed by something, Hoggle.
Imagine you were stranded on a desert island with nothing but a printing machine. You could print off millions of £ but it would be worthless.
tryingtoprep · 21/03/2020 15:52
They could choose to scrap extremely expensive white elephants like hs2.
Fedupandpoor · 21/03/2020 16:00
@tryingtoprep That sounds like the most logical solution. So it probably won't happen.
Yeafortwo · 21/03/2020 16:04
I'm half and half over HS2, part of me says scrap it and use the money but it is a 20 year project so presumably the money isn't just sitting there. Secondly, we will need big infrastructure projects to employ people for many years to come after this.
DippyAvocado · 21/03/2020 16:07
Why can't we just print it?!? Print more than we normally do?
That is what causes hyperinflation.
cologne4711 · 21/03/2020 16:12
Yes hyperinflation is the thing that scares me. Of course, if you have lots of debt, it's great as it wipes it out.
TheMemoryLingers · 21/03/2020 16:15
I think we will see hyperinflation after this. I have a mortgage so it could be worse, but I don't know what to do about my savings such as they are.
CloudsCanLookLikeSheep · 21/03/2020 16:18
But they do just print it - isn't that what quantitative easing is?
Can anyone who understands economics explain how they can get away with printing money (QE) and we don't have to have some sort of negative consequence down the line. Or do we and they just haven't worked it out yet?
openupmyeagereyes · 21/03/2020 16:22
Gilts are government debt instruments. They will borrow money from wealthy individuals and countries and this will have to be paid back later. They can also just ‘print’ more money but this affects inflation adversely.
Fedupandpoor · 21/03/2020 16:28
Mugabe tried printing a load of money to finance military operations (I think), in the end people needed a wheel barrow full of money just to buy bread. I remember reading that people were running out to spend their entire salary on the first day as the money was losing value so fast.
CloudsCanLookLikeSheep · 21/03/2020 16:29
We are barely recovered from the last recession and wages have been stagnant for the past decade.
I can only see things getting much worse after this, if there even is an 'after' (as in return to how we were, or will there just be a new normal)
Porcelainskin · 21/03/2020 16:32
@hoggle I remember learning about this in school. I find it helpful to think about it is as ribena. The more water (printing money) you add, the weaker (less value) it gets.
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