Why is the left frightened of MMT?

Why is the left still terrified of the state’s power to create money?

In this video, I set out a straightforward truth, which is that modern governments create money every single day. That is the foundation of public authority in the UK and every other country with its own currency. The government spends money into existence — and then uses taxation, not to fund that spending, but to manage inflation, redistribute wealth, and steer the economy.

And yet much of the political left denies this reality. From Labour’s fiscal rules to tax justice organisations and NGOs obsessed with “fully funded” pledges, left-leaning politicians cling to the false belief that the state must:

• Tax before it spends

• Borrow from the markets to “afford” investment

• Balance budgets like a household

These ideas are myths — inherited from neoliberal economics and reinforced by the power of the City of London. And they severely restrict what democratic politics can achieve.

When the left refuses to use the state’s power to create money, the consequences are enormous. It means:

• Unemployment becomes a choice

• Austerity becomes a choice

• Poverty becomes a choice

• Failing public services become a choice

• Climate breakdown by inaction becomes a choice

Because the truth is: money isn’t scarce. Political courage is.

In that case, what this video explains is why the left fears being held responsible for the results of power, and why that fear must end. If democracy already has the tools to transform society, why aren’t we using them?