IndeedGovernment spending for Covid has been via bonds.
Normally, bonds are bought by investors and corporates, but due to the extreme circumstances this time, the bonds have been bought by the Bank of England. This is called money printing, and whilst no money has been printed, it's been created out of nothing. Bit like adding a nought to one's savings balance.
This works fine as a solution of the last resort if a) you've a strong economy and b) you don't do it often.
This is because money printing dilutes the money already in the economy - bit like diluting your orange squash. Over dilution leads to higher inflation and hyperinflation - think Germany 1930s.
But, if you've an economy of 3 trillion dollars like the UK does, then pouring another £400bn isn't going to overdilute it.
So, don't fret. None of us are suddenly going to pay double the tax.
Those furloughed have still been paying taxHow about the people who have had to work through Covid and not be 'furloughed' do they have to 'stump up' too.
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