T.V.’s Myth of the Day – Premier League footballers funding the UK’s National Health Service

Welcome to Myth of the Day!

“We have a wonderful myth for you today, with Ian and Alan alongside Gary here in the studio to analyse the high-points and low-points of the myth.”

First over to our commentary team, of Jermaine and Mark.

“Thanks Gabby!

Sheffield United players are struggling here on just under a million dollars a year in average salary, with cellar dwellers Norwich City on $US 1.24 million.

Last week, Jermaine, you saw Manchester City, at $ 8.73 million a player, as opposed to their local rivals, Manchester United, struggling by on a mere $ 7.66 million each.”

“I did, Mark, while I believe you found Brighton players stony broke on only $ 2.26 million each,

as opposed to their bitter rivals, Crystal Palace, in comparative security on $ 3.61 million.

Now over to the late Kenneth Wolstenholme. Hi Ken!”

“Hi everyone. It’s good to be back on your screens after all this time. Surprised to see Liverpool players making $ 6.92 million

a head, while in the Mersey derby Everton are well in arrears on $ 5.13 million. A bit different to my day, when there was a maximum wage, and the players caught the bus to the stadium.

Back to Gary in the studio.”

“Thanks, Ken.

Tomorrow, we’ll see highlights of Tottenham Hotspur $ 4.95 million, against Arsenal $ 5.99 million.

But meanwhile, what do you think Ian of the proposal for Premier League footballers to take a 30% pay-cut during the football shut-down?”

“The guys need their money, Gary.

Short career. Can always get injured. Make the most of it. They deserve the money.”

“What about you, Alan? Given that Liverpool, Bournemouth, Newcastle, Tottenham and Norwich have all furloughed non-playing staff, presumably because they can’t afford to pay them,

so that those workers end up receiving only 80% of their previous wages, and then only if they were on a wage below the national average, shouldn’t the players show solidarity?”

“Well, Gary, the players’ union reckons ‘this would be detrimental to our NHS

(National Health Service) and other government-funded services’. You see, if the players took a pay-cut, they wouldn’t have to pay so much income tax to the government, and then the government wouldn’t be able to find the pounds to pay its nurses and doctors,

and to look after people.”

“I’m not so sure you are right there, Alan. Have you heard of Modern Monetary Theory?”

“Wasn’t that a theory about defending made popular by the Italians in the late 1960s?”

“No, I think you are talking about something else, Alan.”

“I know. It was the theory Sir Alf used to win the World Cup.”

“No, Ian. Listen I’ll tell you.

The British Government is a monetary sovereign currency issuer. Every pound it spends is a new pound. It doesn’t need to get pounds from footballers, or from anywhere else,

before it spends. It spends new pounds into the economy, and then taxes some back out again, to stop that spending being inflationary. It usually spends more than it taxes. That is called a budget deficit, but it is really just a deposit the government is making in the banking

system.

You’ve heard of the national debt, Alan?”

“Is that our debt to Arsene Wenger? We sure owe him a debt for changing the culture of football in this country during his years with Arsenal. Especially with the Invincibles team!”

“No, Alan, A lot of people worry about

the government’s debt and call it the national debt. They shouldn’t. It is just the pounds the government has spent into circulation and not yet taxed back out of circulation yet. It is better thought of the net money supply from the government to the rest of us.

“Hang on, then, Gary. Are you telling me our taxes don’t pay for the NHS?”

“That is exactly what I am telling you, Ian.”

“Why do we pay taxes at all then?”

“The macroeconomic role of taxes is to create a demand for the currency and to limit inflationary pressures. You know s

o the government can spend on things without there being too much spending in total. They tax us so we spend less than we otherwise would, so there is room for them to spend without causing inflation.”

“But us footballers make so much money we don’t need to spend less

when we pay taxes. They just come out of our savin’.”

“Absolutely, Ian.

We pay so much tax because it is only fair. We have too much wealth and power, and too much command over real resources. We are too rich, really. It is only right that we should pay more in taxes.

It is part of the deal, if we want to live in a civilised country with social stability and good things like the NHS. We don’t pay for the NHS, but our taxes are still important.”

“Now, I understand Gary. And given that our workmates, who are on much less than us, have seen

their pay fall, it would be only fair and reasonable for us to take a cut, in solidarity.”

“That’s what I think. Alan.”

“We’d still have plenty, our mates would be better off, and it would make no difference at all to the funding of the NHS or other government services, Gary.”

“That’s right Ian. You’ve got it.”

“That’s the end of Myth of the Day tonight, everyone. The Myth of the Day was the notion that taxes pay for government services, in an economy like the UK.

Before we go, I’d like to recommend a great book on this issue,

dispelling this and other myths, written by Stephanie Kelton, coming out in June. The Deficit Myth – Modern Monetary Theory and the Birth of the People’s Economy.”

“I’ll buy the players' union a copy, Alan.”

“Good idea, Ian. And goodnight.”