Government "deficit spending" is the nation-state creating money (out of thin air) and exchanging it.
The payroll tax (FICA) does not fund Social Security or Medicare. Like all other federal agencies, those agencies are funded by dollars created on purpose by the government (using laws from Congress) and placed in their accounts by the Treasury.
#FederalDeficit #fiatMoney #deficitSpending #moneyIssuance #moneyCreation #monetaryTheory #quotes #deficit #CentralBank #CentralBanks #Treasury #MMT
“The government can always finance its spending by creating money.”
~Hyman Minsky, economist
#fiatMoney #deficitSpending #moneyIssuance #moneyCreation #monetaryCreation #monetaryTheory #slogan #quotes #deficit #Fed #CentralBank #CentralBanks #Treasury #MMT
“A sovereign government does not need to collect taxes or issue bonds to finance spending. It finances directly through money creation.”
– Eric Tymoigne is an associate professor of economics at Lewis & Clark College, NY, who specializes in the fields of #money and #banking, monetary theory, and financial macroeconomics
#fiatMoney #moneyIssuance #moneyCreation #monetaryCreation #monetaryTheory #slogan #quotes #debt #deficit #Fed #CentralBank #CentralBanks #Treasury #currency #MMT
"Modern Monetary Theory (MMT) is a hip economic/financial paradigm apparently sweeping a world unsatisfied with mainstream economics. Over the past year, I have been hearing a growing number of people refer to MMT: either fans who think it blows up my Austrian views, or foes who think it deserves a full-scale critique." https://mises.org/mises-daily/upside-down-world-mmt #mmt #economics #austrianeconomics #monetarytheory #mmtfallacy
I'm with M. Grégoire; I don't buy "Modern Monetary Theory", which seems to be half witchcraft and half voodoo (as opposed to economics in the normal way a la Henry Hazlitt). I assure you, I'm not ignorant of economics.
The money for national government spending comes from three sources: taxes collected, bonds issued, or simple monetary inflation (i.e. printing money). The latter two have negative impacts on an economy, but on different timescales.
If you artificially throttle taxes collected, then you force the government to choose one of the other two. And as I said, that will cause the feds pain.
#economics #EconomicsInOneLesson #HenryHazlitt #MonetaryTheory
"#Money, and the forms it takes in a society, is as much about social norms as it is about pure economic efficiency," writes Esward Prasad in his book "The Future of Money" in the opening to chapter seven. Exactly.
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#economics #MonetaryTheory #CBDC
Modern money theory. Credit to @RichardJMurphy Essential reading for anyone interested in the economy:
https://www.taxresearch.org.uk/Blog/wp-content/uploads/2023/04/Modern-monetary-theory.pdf
Assorted Articles IX
I'm making my way through a collection of political articles I tucked away and found gems I want to share.
