What if economics has been asking the wrong question? @RichardJMurphy

Uploaded July 2026 | Updated September 2026, 3 weeks ago

Most discussions about economics begin with money. I think that’s a mistake.

In this video I explain why money is not the economy, why wealth is not the same thing as money, and why economics has become obsessed with the wrong things.

Starting with a simple thought experiment about being stranded on a desert island, I explore what really creates value, why energy and human potential matter far more than financial wealth, and why money is simply an accounting system that allows society to organise itself.

Along the way I explain:

• why money is information rather than a thing
• how governments actually create money
• why taxes do not fund government spending in the way most people imagine
• what really limits government spending
• why inflation is about real resources, not simply money creation
• why the purpose of an economy should be to help everyone realise their potential rather than maximise GDP or financial wealth.

In a narration of a series of essays, I explain economics in plain English without losing the underlying theory. The essays draw on decades of my work on accounting, economics and modern monetary theory, but are written for anyone curious about how our economy really works.

If we understand what money really is, we can begin asking much better political questions, and perhaps build a society that serves everyone instead of just protecting wealth.

Please let me know what you think in the comments.

Take a look at the poll: youtube.com/post/UgkxsbMgy5CBCSe1snDaq16pkHd2OxF7grL-

TRANSCRIPT
A transcript for this video is available at: taxresearch.org.uk

IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO
If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp

HOW TO SUPPORT US
Please consider donating: ko-fi.com/taxresearch

ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.

This video was edited by Thomas Murphy.

RICHARD MURPHY ON BLUESKY:
https://bsky.app/profile/richardjmurphy.bsky.social

OR

ON MY BLOG: taxresearch.org.uk/Blog

HIT SUBSCRIBE & GET NOTIFICATIONS
Subscribe and get notified of new videos released.
INTRODUCTION: youtube.com/watch?v=HdHsRPy3060

PLAYLISTS:

The Wealth Series
youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD

Ecenomics
youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4

Britain
youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10

Tax
youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY

MMT
youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX

Money
youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m

Climate Change
youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ

USA
youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H

Labour
youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw

The Trump Administration
youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx

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$Banks exist to keep you in debt - here's how they do it Banks want to keep you in debt. Thats how banks make money, and its the core truth about how banking works that most people never learn. In this video, I explain the banking system simply, highlighting the three things banks actually do: - bookkeeping, - borrowing your money, and - lending. But heres the key to understanding money creation — banks create money from nothing when they lend. They dont lend your savings. They tap numbers into a keyboard and charge you extraordinary interest for the privilege, sometimes seven or eight times the Bank of England base rate on credit card debt. This is how the money supply really works, and why fractional reserve banking means bank profits come at your expense. Whether its mortgage debt — a term that literally means the grip of death — or personal debt, UK households are drowning in, borrowing is designed to make you miserable. This isnt financial literacy they teach in schools. Its financial education for beginners that the banking industry would rather you never had. Understanding economics explained this way gives you the tools to protect yourself. If you want real financial independence and genuine financial freedom, the first step is knowing how banks work and why they will always be trying to fleece you. Never trust a bank. Keep clear of bankers. They really do not care about you. 00:00 — The myth: banks as your “friendly helper” 01:10 — What banks actually do: bookkeeping explained 02:20 — Deposits: why your money becomes the bank’s money 03:30 — Why banks pay low interest on savings 04:40 — How banks really lend: money creation explained 05:50 — Loans from nothing: the reality of bank lending 06:50 — Interest, risk pricing and how banks make profit 07:50 — Why banks need you to stay in debt 08:40 — Mortgages, credit and lifelong indebtedness 09:30 — Conclusion: how to deal with banks and protect yourself TRANSCRIPT A transcript for this video is available at: https://www.taxresearch.org.uk IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. https://www.taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp/ HOW TO SUPPORT US Please consider donating: https://ko-fi.com/taxresearch ABOUT RICHARD MURPHY Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’. This video was edited by Thomas Murphy. RICHARD MURPHY ON BLUESKY: https://bsky.app/profile/richardjmurphy.bsky.social OR ON MY BLOG: http://www.taxresearch.org.uk/Blog/ HIT SUBSCRIBE & GET NOTIFICATIONS Subscribe and get notified of new videos released. INTRODUCTION: https://www.youtube.com/watch?v=HdHsRPy3060 PLAYLISTS: The Wealth Series https://www.youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD Ecenomics https://www.youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4 Britain https://www.youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10 Tax https://www.youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY MMT https://www.youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX Money https://www.youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m Climate Change https://www.youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ USA https://www.youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H Labour https://www.youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw The Trump Administration https://www.youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx #BankingSystem #MoneyCreation #DebtEconomy #PersonalFinance #BankingExplained #HowBanksWork #FinanceEducation #CreditSystem #EconomicReality #InterestRates #DebtTrap #Mortgages #CreditCards #FinancialSystem #BankOfEngland #MoneyMyths #EconomicEducation #WealthInequality #FinancialLiteracy #PoliticalEconomy #FundingTheFuture #EconomicsExplained #DebtCycle #FinancialPower #Capitalism #EconomicTruth #BankingCrisis #MoneySystem #FinanceTruth #StayOutOfDebt$

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