Funding the Future Why good economics can feel wrong
Mar 1, 2026
A clear challenge to the household myth about government money and why that story sticks. An explanation of how private saving, government deficits and accounting logic connect. Exploration of the psychology that makes good economics feel wrong. A call for politics focused on care, clearer narratives, and persistent repetition to counter harmful austerity ideas.
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Government Is Not A Household
- Government is fundamentally different because it issues money and taxes to control inflation.
- Richard Murphy explains this makes government not like a household and underpins why private saving requires a government deficit.
Private Saving Equals Government Deficit
- Private saving must equal government deficit because accounting requires every saver to have a borrower.
- Murphy uses sector balance accounting: if the private sector runs a surplus (saving) the government must run a deficit to balance credits and debits.
Household Myth Persists Because It Protects Power
- Challenging the household myth is psychologically hard because it's been repeated by politicians and media for decades.
- Murphy argues that exposing this myth threatens those who use it to justify austerity and cuts to public services.