Wouldn’t it be more appropriate just to hire people and set them to work in the NHS? It’s way past time the government stopped messing around and just hired all the spare labour - which can then be directed to assist the NHS or directed to stay at home as required. When there are so many people without work that want it we need to stop QE’ing Gilts and start QE’ing workers hours instead. All this could be done with a…
I agree with everything here except the reference to QE. Quantitative Easing works to control the money supply only because the central bank can quickly mop the money back up by selling the bonds it previously bought. The central bank can't mop up money it sent to people as wages, so if inflation started, they would have no leverage.
Spending is automatically recovered by taxation of the flow. If the central bank spends on wages, the Treasury will end up running a surplus.