This is a guest blog from Positive Money. Positive Money is a movement to democratise money and banking so that it works for society and not against it. They raise awareness and understanding of the fact that most of the UK’s money is created by banks as they issue loans.
The UK parliament debates Money Creation for the first time in 170 Years
Parliament places huge scrutiny on how taxpayers’ money is spent. But for the last 170 years, parliament has largely ignored the question of how money is created in the first place. This will change on Thursday 20th November when MPs will be given the opportunity to attend a debate on money creation and society.
Money creation affects almost every aspect of our lives and is directly connected to almost all public policy, including public and private debt levels, house prices, and rising inequality, but it remains very poorly understood. A recent poll found that 7 out of 10 MPs believed that only the government can create money, when in fact 97% of money is created by banks when they make loans, as recently confirmed by the Bank of England.
This debate has cross-party support. It is being hosted Caroline Lucas (Green), Michael Meacher (Labour) and Steve Baker (Con). Positive Money have launched a campaign calling on MPs to attend the debate – Whatever their position, they need to be there. Lacking a basic understanding of where money comes from leaves our MPs ill-equipped to prevent another financial crisis, tackle the housing crisis or understand the drivers of growing inequality.
Please call on your MP to attend the debate. We have just over a week to make the most of this historic opportunity.
Email your MP. You can use our email template to ask them for their commitment to be there.
Phone your MP. This is the quickest way to let them know the debate has been announced and find out if they are planning to go. (Call the House of Commons switchboard on 020 7219 3000)
Tweet your MP. Include the hashtag #sovereignmoney in your message so we can follow your conversation.