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> The US (as an example) doesn't have the ability to effectively decrease monetary supply by simply failing to redistribute taxes Why would it matter how quick
by paulgb 6y ago
> The US (as an example) doesn't have the ability to effectively decrease monetary supply by simply failing to redistribute taxes
Why would it matter how quickly the government could cycle through the national wealth, which includes all private assets? The M1 money supply, at 5.2T[1] and using your 3.5T tax revenue figure, would take less than two years to cycle through.
1. https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1
- munk-a 6y agoVery little value is in M1 and most of M1 is not cycled through the economy, the vast majority of M1 out there is used for illicit trading so I wanted to avoid touching on it too heavily in the paragraph above but there is a lot of M1 out there that won't get back to the government in a decade.