Wes Streeting exists just to regurgitate stale Tory misinformation. He always ignores the fact that gov spending on the NHS boosts the economy hugely, generating money - and tries to fool us with the Thatcherite TINA argument instead. #fiscalmultipliers
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Could you start a conversation about fiscal multipliers, and the fact that the NHS is NOT a drain on our economy, but is instead a way to create economic growth?
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This new analysis produced the same overall figure as that estimated by the IMF, an overall spending multiplier in Europe of about 1.7 – so each 1 euro spent, in the short term, increased economic growth by €1.70. However, more importantly, the size of the multiplier varied widely across government sectors. The multipliers were especially large, up to ~€3, in health, education, and social protection, representing a large, short-term return on investment. In contrast, multipliers associated with defence spending and bank bailouts were smaller and in some cases negative. When we looked more closely we found that, in these cases, money was flowing out of the economy, perhaps to US firms for spending in conflict zones in the case of defence or paying down international debts in the case of bailouts. In contrast, money spent on health and education was flowing into the pockets of often low-paid workers, who in turn were spending much of it in local shops, which were buying from local suppliers and using local services. This information can guide government’s budgetary decisions, suggesting areas where public expenditure will boost growth and increase tax revenues.

The size of the multiplier varies by sector with defence being low or negative, and health and education being high. Below is referring to a study showing relatively short-term impact
#fiscalmultipliers #cuts #austerity #governmentspending

More on how government health spending increases economic growth (ie #fiscalmultipliers #multipliereffect). Cuts kill, and they damage the economy, stifling growth. So Reeves' policy makes no sense - even on its own terms. #Labour #NHS #Austerity #Cuts #Starmer #Reeves