You would assume that government spending is largely designed to help those on lower incomes. The NHS was designed to ensure free healthcare for all. The same for public education. And for welfare payments. So, I theory, the more the government spends, the more wealth is transferred to lower incomes.

This week Phil and Steve explore the idea that rising government deficits actually help the rich. That’s because the so-called debt is financed by the issuance of bonds, much of which is nought on the secondary market to add to the wealth funds of the richer end of society. They receive dividend payments funded from the government. That’s a case of government money supporting the wealthy.

So, is there a way of government money being used to support the less well-off, without helping the rich to get richer?

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