At various times in our meetings we have discussed ‘where does the UK Government get its money from?’

Modern Monetary Theory (often called MMT) explains the answer to this question. And the answer is not what we are usually told.

Below is a link to a short video that explains MMT and where the UK Government gets its money from:

MMT: Magic, myth or reality?

And here is a link to an article that provides further detail: Link

It is important that we, as politically active people (and citizens), know and understand this, because usually we are not told the truth about how our Government is ‘self-financing’: that is, if it wants to do somethng it can always find the money to do so– because it creates its own money.

I’d recommend watching the video first as it is only about 7 minutes long and gives a good overview.

It is also worth remembering that MMT is not ‘a theory’ that has yet to proved: it is actually the description of the current system as it really works.

Steven Boxall
Political Education Officer
October 2025