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Yes; that's exactly my point. Bond sales set interest rates for everybody, and tax revenues are nothing but bond purchases.
by jl2718 5y ago
Yes; that's exactly my point. Bond sales set interest rates for everybody, and tax revenues are nothing but bond purchases.
- PaulDavisThe1st 5y agoWhen something flows around in a circle, no matter how big the circle or how long it slows to a stop at certain points, it's not always easy to say where it starts and where it ends up.
- imtringued 5y agoYou could in theory replace the interest rate with a tax. Private banks put their profit margin on top. Governments always issue 0% debt. It is a slightly less broken system than the one we have today (no endless nominal growth required) but functionally it is identical. So your idea is a good approximation.
- jl2718 5y agoHow is that less broken? Did you read the article that says the wealthiest 0.01% pay interest on loans instead of taxes on gains? Interest takes zero effort to collect. Taxes take huge expensive bureaucracies and constant harassment of citizens. Taxes do not control money supply any more than high interest rates. It’s just a question of where the newly-created money ends up.