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> For a nation with it's own fiat currency (currency issuers) government spending creates money, and the role of taxes is not to fund spending. Taxes fulfill ot
by vageli 7y ago
> For a nation with it's own fiat currency (currency issuers) government spending creates money, and the role of taxes is not to fund spending. Taxes fulfill other roles, like controlling inflation and expressing social policy.
If government spending creates money where does the money the government spends come from?
- RockIslandLine 7y agoAre you unclear on the meaning of create?
- yesforwhat 7y agoWhat gives it value? If you free spend and free print money to pay for said spending, the value goes away. Quite quickly, as well.
- RockIslandLine 7y agoThat's why you have taxes to destroy money and control inflation. There are good reasons why budgets should be close to balanced most of the time.