mmt
People don't understand what money is. Some people gain advantage by tricking those people into thinking governments "borrow."
Government debt is simply a measure of how much money is circulating. Govts spend money into the economy, taxes take it out.
Taxes do not "fund" spending. Taxes are not "revenue." Taxes remove currency from circulation.
In the USA "paying off the national debt" would mean taxing $30 trillion out of the economy. How do you think that would work out?
New #review of Stephanie Kelton's The Deficit Myth. It's my first foray into #MMT, and it took me a long time to critically engage with the book.
I'm not unsympathetic to the argument, but I am not fully persuaded. The argument is rather thin and would have benefitted from more detail, more evidence, and pre-emptive counters to common critiques. Nonetheless, it was still very thought-provoking and a valuable intervention.
https://the-casual-critic.writeas.com/the-deficit-myth-banishing-the-ghost-of-weimar
Most people think reducing the federal budget deficit is a good thing. Makes sense, right? I mean, if I’m broke & have bills, that’s bad! But there’s a problem: The analogy between my finances and those of a currency-issuing government is false. Wrong. Illogical. So why do so many people keep getting it wrong? Turns out, they’ve been misled—by economists! 1/3
#TheFederalDeficitIsOurMoney #TheDeficitMyth #Deficit #Economics #DoubleEntryAccounting #BothSidesOfTheStory #MMT #PostKeynesianEcon
See? Debt/deficit doesn't matter.
I disagree with CBC's analysis that this is a transfer from young to old, since that relies on the assumption that taxes must eventually be increased to "pay it down/off". That's false. The debt of fiat currency issues always increases, pacing economic growth, deflating with inflation. It's normal.
U.S. Senate passes Trump's 'Big Beautiful Bill,' sends to House for final approval | CBC News
https://www.cbc.ca/news/world/senate-republican-trump-tax-spending-bill-1.7574808