The sound of money being created.

Artist Lyndsey Dearnley

The Covid shutdown, according to the Centre for Economics and Business Research, is costing  £2.5 billion a day in lost production.

Today, we could have paid 100,000 extra nurses an annual salary of £25,000 a year. 

Tomorrow, £2.5 billion would have mended every pot hole, on every road in Britain.

On Wednesday,  we could have built six sparkling new hospitals.

On Thursday, we could have purchased four hundred new tanks.

On Friday,  Labour’s complete tuition fee cut could have been completed.

On Saturday, 400,000 state pensions would have been funded.

And on Sunday – you choose – it’s just a lot of noughts. Maybe we could have added 100,000 new immigration staff and coast guards to defend our borders

All around the world a hush has descended – except for the sound of money being created from thin air. In America, the government has spent (lost), more in the past four weeks than on the Iraq and the Afghanistan wars over ten years.

Does that mean that a soldier’s life is worth 100 times less than a Covid life?

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11 Comments on The sound of money being created.

  1. A brilliant to the point piece.

    That all can understand.

    At what point in the last 50 years did we move from an acceptance that commerce and entrepreneurial flair created the wealth of a nation to a position where governments Worldwide are entirely comfortable to print money to pay for everything.

    • You create wealth by taking raw materials, doing work on them, and ending up with a product that has added value as a result of that work. Not by gambling on stocks or the future price of something.

  2. In her cost benefit analysis, Catherine has not revealed the value/opportunity cost she puts on the lives of those who would have died had the virus been allowed to rip through the community in pursuit of ‘herd immunity’. While we’re at it, we might question the cost of keeping alive the elderly, the infirm, the handicapped, the terminally ill etc. They’re all a burden on society. As for incarcerating prisoners instead of dispatching them, don’t get me going. So many other ways we could have used that money.

    • Not to mention that this “lost” money wouldn’t be available for any of those things. Or so the tories say as their mates in ‘finance’ squirrel away another £million bonus to an offshore tax haven.

      What do we produce these days anyway?

      • I’m at a loss to say what you produce “these days” Andrack – aside from drivel of course; but over here, we are big producers of more precious commodities. The drop in price of liquid gold (oil) is causing much worry for us. Catherine calls to mind my fears for our future: what with all the cash being printed by your national bank and mine, how much will a loaf of bread cost a few months from now? Your friend Myles (our editor) asked that very same question a few blog posts ago.

        • You ought to know by now that the editor doesn’t like personal attacks and might ban you. There’s nothing else of any substance in your comment.

    • Tomas Dusek (@5:54 p.mp): speaking as an expert (in something or other) your sarcasm has not gone unnoticed. First, you disparage herd immunity without knowing the least thing about the concept (which, if you did, you’d know real experts endorse) before playing your bleeding heart, shabby and worm-eaten ageism/infirmity cards.

      • My understanding is that some experts endorse a ‘herd immunity’ strategy (like those the government listens to) and others containment. The latter point out that herd immunity only makes sense (1) in relation to a developed vaccine, and (2) in relation to a virus whose infection confers immunity, which is currently unclear. I’d be interested to know how you define a ‘real’ expert. Someone who agrees with you, perhaps?