, 10 tweets, 3 min read Read on Twitter
Q: Can we afford a #GreenNewDeal?
A: Yes. The federal government can afford to buy whatever is for sale in its own currency.
Q: Are you saying the government can just "print the money" to pay for new spending?
A: Is there any other way?
Q: Is there another way? Yes, you can raise taxes!
A: That's not how it works. Taxes remove some of the money the gov spends into the economy. You could spend & tax the same amount. But the gov normally spends more than it taxes so that the economy can keep the extra dollars.
Q: But that's deficit spending, so now you have add to the national debt.
A: Except the $ to buy the bonds comes from the deficit spending! It's not "borrowing" in any meaningful sense of the word. When people swap $$ for bonds, they're just holding another kind of gov money.
Q: But don't we eventually have to pay back the debt?
A: The government retires bonds all the time. It's simple. You just debit (-) the seller's securities' account and credit (+) a reserve account. It's all done using a keyboard at the NY Fed.
Q: But what about the interest payments? There will be less money available for everything else.
A: Wrong. The gov makes interest payments the same way it makes all payments. It can always spend more on other things. Inflation is the limit.
Q: So interest on the debt can never be a problem?
A: All spending carries inflation risk when the economy gets to full capacity. If people are receiving/spending too much interest income, the Fed can cut rates. Or Congress can cut spending or raise taxes.
Q: Are you saying we can have a #GreenNewDeal without *any* new taxes?
A: It depends what's in the GND and whether the US economy has the extra capacity to absorb the proposed spending *at the time it occurs.*
Q: But we're talking about trillions of dollars over time!
A: The GOP did well over $5 trillion in tax cuts and war spending without causing inflation to accelerate. And some GND spending will increase capacity, which gives you more room to spend safely.
Q: Do you think @SpeakerPelosi will read this?
A: I don't know, but I hope @AOC will.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Stephanie Kelton
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!