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Why would we (assuming you mean the US) have to pay for this with our taxes, who do we owe the money to? The US issues it’s own currency and we printed money to
by lefrenchy 6y ago
Why would we (assuming you mean the US) have to pay for this with our taxes, who do we owe the money to? The US issues it’s own currency and we printed money to keep the economy afloat. We don’t owe that debt to anyone?
The only reason extra taxes would be needed is to curb inflation.
- eloff 6y agoThe question is, was this a free lunch then, or will it be paid for via inflation?
- lefrenchy 6y agoYeah, I accidentally left that out of my comment. I agree though, inflation is what we need to be careful of. I don’t like the rhetoric that we will need to pay it back in taxes though because I find it misleading. The real is inflation, not some debt to be paid.
- cheerlessbog 6y agoInflation is too much demand chasing too little supply. If the money printing simply replaced missing demand, should we expect any inflation?
- jackcosgrove 6y agoIf demand stayed constant while supply decreased because fewer people were working, yes I would expect inflation.
- eloff 6y agoI think that's too simplistic. If it were true you could just print your way out of any down turn with no consequences. Crazily enough there is a mainstream view in macroeconomics that you can do just that. I think people aren't stupid though. If suddenly there are more dollars, then a dollar should be worth less. Hence inflation.
- anoncareer0212 6y agoI know this is the line of argumentation for MMT but it's _very_ sneaky to do that without saying so :(
- lefrenchy 6y agoTo do what without saying so?
- jackcosgrove 6y agoInflation caused by currency debasement is a flat tax, which is comparatively regressive. It raises the prices of all items faster than wages, and everyone has to buy food, buy electricity, etc. Someone will have to pay.
- ketzo 6y agoInflation is not a given, though. Governments issuing stimulus payments != inflation, at least not necessarily.
- scrollbar 6y agoHm no; monetary inflation is reducing the value of each dollar so disproportionately affects those with more dollars, making it progressive.
- jackcosgrove 6y agoMost wealth is tied up in assets that are shielded from inflation.
- lefrenchy 6y agoI agree with the premise, but printing currency in the midst of a large economic crisis to keep consumers afloat is not guaranteed to result in inflation though, is it?
- 6y ago
- sandworm101 6y agoMaybe at the federal level, but state and local governments cannot print money. They will need to raise taxes to cover thier costs.
- taneq 6y agoCan't they just get an indefinite loan from the federal government, since the numbers are made up and don't matter anyway?
- lefrenchy 6y agoThat’s a reflection of poor execution on the part of the federal government though isn’t it? States and local governments will suffer the consequences for what the federal government did not adequately address.
- sandworm101 6y agoIn the US system, health is generally considered a state responsibility. The power of federal agencies over state governments on matters of health remains very limited, mostly to an advisory role. This trend towards laying everything at the feet of the national executive, the presidency, is a new trend. Once upon a time the president might have dismissed an outbreak as literally "not my job".
- tathougies 6y agoPrinting money increases the interest rate for future borrowing. If the united states did not have outstanding entitlement programs that needed immediate cash, we could stop issuing new debt until the interest rate was manageable. However, tax revenues can't cover our expenses so we are forced to issue debt and with printed money the debt is now going to cost more to service.