,
14 tweets,
6 min read
Read on Twitter
2/ The purpose of a government is to
compel its people
to use the real resources at its disposal for the benefit of society (what they define as “beneficial”).
Money, such as the United States dollar in the US, is the incentive given to the people for doing so.
compel its people
to use the real resources at its disposal for the benefit of society (what they define as “beneficial”).
Money, such as the United States dollar in the US, is the incentive given to the people for doing so.
3/ In other words: Money is a tool that the federal government uses to
provision
itself. Examples of what the government needs its people to do:
provision
itself. Examples of what the government needs its people to do:
4/ You do as the gov’t asks, they give you money as payment (paid for with created currency👇!). Just like a paycheck from your job, after taxes, that money is yours to keep no strings attached.
Money from the federal government is our “federal paycheck.”
Money from the federal government is our “federal paycheck.”
5/ We often hear:
“Money has value because it is backed by
the full faith and credit of the government.”
This is more accurately stated as:
“Money has value because people have faith that the gov’t will DO SOMETHING SEVERE if they do not pay their fed taxes with THAT money.”
“Money has value because it is backed by
the full faith and credit of the government.”
This is more accurately stated as:
“Money has value because people have faith that the gov’t will DO SOMETHING SEVERE if they do not pay their fed taxes with THAT money.”
6/ Because of this,
1. you must get a job
2. in order to get the government’s money
3. in order to pay your federal taxes with that money,
4. in order to avoid those penalties.
1. you must get a job
2. in order to get the government’s money
3. in order to pay your federal taxes with that money,
4. in order to avoid those penalties.
7/ Even if you don’t pay federal taxes (maybe you don’t work or you’re homeless), you still must get the government’s money, in order to purchase things from people that do need pay them.
This is how “taxes drive money.” More on federal taxation:
This is how “taxes drive money.” More on federal taxation:
8/ (No matter what, we have to pay our bills and debts, but federal taxes are the reason why we pay them in the government’s money and not with gold coins, chickens, or barter.)
9/ Regarding severe penalties if you don’t pay your taxes in the government’s money, here is an interview with David Graeber on his book, 5,000 Years of Debt, at Naked Capitalism (@yvessmith @lambertstrether). nakedcapitalism.com/2011/08/what-i…
10/ Money is a measuring unit. You can measure Philadelphia to Chicago in miles or centimeters. You don’t “run out” of centimeters. In the same way, the fed gov’t does not – and cannot – run out of its own money. @elliswinningham elliswinningham.net/index.php/2019…
11/ What does money measure? Resources. Mostly, this means tangible things you can touch. More specifically, real resources are
Raw materials,
Labor,
Technology,
And time (because even if you have the stuff, you need time to make it happen).
Raw materials,
Labor,
Technology,
And time (because even if you have the stuff, you need time to make it happen).
12/ Thought of another way, money is the tool used by the federal government to instruct its people specifically what they want done, when, and with which resources.
Finally, money is also a tax credit.
Finally, money is also a tax credit.
@threadreaderapp unroll
