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THERE IT IS!
In layman’s language, there’s the core logical error made by those insisting that the US government must tax or borrow to spend:
“The US government needs dollars to spend.”
NO, IT FUCKING DOESN’T.
Just the opposite. When it spends, it CREATES money.
AND bonds.
In layman’s language, there’s the core logical error made by those insisting that the US government must tax or borrow to spend:
“The US government needs dollars to spend.”
NO, IT FUCKING DOESN’T.
Just the opposite. When it spends, it CREATES money.
AND bonds.
When Congress authorizes and appropriates to finance, say, a GND, the Treasury doesn’t gather up some of our tax dollars (which don’t exist btw) or borrow some of our untaxed dollars to do so. That’s pure fantasy.
It just spends the necessary money by creating it.
That’s REAL.
It just spends the necessary money by creating it.
That’s REAL.
That’s the way it’s happened for the last 100 years or so.
Critics of MMT would have you believe otherwise. That the USG spent our tax money or borrowed our untaxed money to spend.
That’s fantasy. Buy that and you don’t belong in a policy conversation about the future.
Period.
Critics of MMT would have you believe otherwise. That the USG spent our tax money or borrowed our untaxed money to spend.
That’s fantasy. Buy that and you don’t belong in a policy conversation about the future.
Period.
Those screeching “where’s the money going to come from” are as ignorant as folks bellowing “we’re going to have to raise taxes.”
It’s going to come from the same fucking place it ALWAYS has.
That alone has exactly the same implications for taxing & borrowing as it ALWAYS has.
It’s going to come from the same fucking place it ALWAYS has.
That alone has exactly the same implications for taxing & borrowing as it ALWAYS has.
Start with the ignorant nonsense that the USG needs dollars from the private sector to spend, that it needs to get them by taxing or borrowing, and you’re down the fucking rabbit hole.
Keep digging and you’ll meet Dan. And Doug. And Matt.
Hell, you might even run into Paul.
Keep digging and you’ll meet Dan. And Doug. And Matt.
Hell, you might even run into Paul.
One last thing.
The USG doesn’t borrow like you, I or a business borrows. WE need dollars. It doesn’t.
Can you just create money and spend it? Can you simultaneously issue safe, liquid interest- bearing IOUs that are just like money? No?
Well, THAT’S what USG “borrowing” is.
The USG doesn’t borrow like you, I or a business borrows. WE need dollars. It doesn’t.
Can you just create money and spend it? Can you simultaneously issue safe, liquid interest- bearing IOUs that are just like money? No?
Well, THAT’S what USG “borrowing” is.
