4 ms·
Nice straw man. Where did I mention that? The money comes from spending the money. And you can do that right up to the point where you run out of unemployment.
by neilwilson 6y ago
Nice straw man. Where did I mention that?
The money comes from spending the money. And you can do that right up to the point where you run out of unemployment.
In the vernacular where government spending becomes ineffective.
- notahacker 6y agoI'd have thought the point as pertains to UBI - an expensive permanent universal subsidy rather than a payout to the unemployed or job guarantee which fluctuates cyclically according to unemployment levels - was pretty obvious. In conventional economics the government funds its spending by borrowing or taxation. In Randall/Wray economics a unified govt/central bank spends the money into existence and has huge scope for fiscal stimulus in economic downturns with bond issue being unnecessary, but money still derives its value from the taxes the government levies. Under either economic model, the extra cost of funding voluntary economic inactivity under UBI implies net tax rises.