Finding the money for election promises

The next political elections are approaching and all the parties are competing to announce bombastic electoral promises, but they find themselves in difficulty when someone asks them the usual question: "where do you find the money?".

The center-right proposes the Flat Tax which, apart from the fact that it mainly facilitates the rich, that is, those who currently need less aid, has a very high cost which makes it difficult to achieve.

The center-left is more realistic than the King, proposing to introduce a Patrimonial or inheritance tax, to prove that it is "sustainable" and to present itself in Europe with the accounts in order.

No one who takes into consideration the hypothesis that resources can be created by the State, as the exclusive holder of monetary and fiscal sovereignty (Article 117 point “e” of the Constitution).

Yet in recent years there have been two small revolutions that have shown that this is at least possible:

– a real public investment bank was established in Italy with the Law Decree n.142 of 2019, which expanded the Medio Credito Centrale, making it acquire the Banca Popolare di Bari, allowing in 2020 the State, through the Guarantee, to guarantee loans from private banks to companies in difficulty, in order to help them in a difficult moment with more than 200 billion euros;

– the transferable tax credit was introduced in Italy, with the Law Decree n.34 of 2020, which established the Superbonus 110%, financing without public debt a substantial economic growth both in construction and in related sectors, with the enthusiastic approval from Europe and evident benefits also for the state coffers, which injected almost 40 billion euros into the real economy.

Nobody asks: "but where was this money taken?".

No government bonds were issued on the financial markets, no taxes were raised for Italian citizens and no public spending was cut.

Someone will object that in the case of the Superbonus it was necessary to find "financial coverage" with the PNRR for the future loss of revenue, but the State had an increase in revenue in the first six months of 2022 alone, amounting to 14 billion euros, and with that of the following years it will gain.

The truth is that the money of the public bank and the Superbonus are created out of thin air, precisely by virtue of the monetary and fiscal sovereignty of the state.

This is why we took the opportunity to try to launch a concrete and feasible proposal to find the necessary resources, so that the parties can include it in their electoral programs and demonstrate that it is not the resources that are lacking, but the ideas.

We have decided, with the Committee of Promoters of the National Salvation Plan, to launch a new petition that contains all the essential elements of the "1000 billion euro Economic Rebirth Plan", which parties can include in their electoral programs, so to be sure that the financial resources are there and therefore all the promises they will make can be realized.

We invite all citizens to sign this petition and to have relatives, friends and acquaintances sign it, so that politicians will no longer have the excuse of "there is no money":

https://www.change.org/p/piano-di-rinascita-economica-da-1000-billiardi

I will vote only for the parties or coalitions that put this plan in their electoral programs, setting aside the phantom "Agenda Draghi", the old "Agenda Monti", the stale "Cottarelli's Spending Review" or the neoliberal "Criteria of the ECB" to adopt the TPI, the anti-spread shield.

Please read and sign the petition. Spread it and get it signed by as many people as possible.

We want and can… GO BIG AGAIN

Fabio Conditi

President of the Positive Money Association

https://monetapositiva.it/

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The article Finding money for election promises comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/trovare-i-soldi-per-le-promesse-elettorali/ on Sat, 13 Aug 2022 09:06:26 +0000.