3 ms·
On the one hand, printing money instead of [1] taxing is good because you can get rid of whole government departments (saving real resources) and tax collection
by csense 11y ago
On the one hand, printing money instead of [1] taxing is good because you can get rid of whole government departments (saving real resources) and tax collection no longer has to invade people's privacy by forcing them to give the government extensive records of their economic activity.
On the other hand, taxation is good because it reminds people there are costs to government services when they have to actually pay the tax, and in addition you can use a tax to inject a market signal about costs that would be normally externalized.
[1] Unfortunately, MMT implemented by any government will likely be "in addition to" rather than "instead of" existing tax mechanisms.