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Yes, the value replacement is there. And yes, tax dollars help "pay" for services. What I mean by "physical transfer" is literally that if you mailed a brick o
by coralreef 5y ago
Yes, the value replacement is there. And yes, tax dollars help "pay" for services.
What I mean by "physical transfer" is literally that if you mailed a brick of cash to the federal government, they would just burn it.
Taxation = money out of the system
Money printing/spending = money into the system
The difference causes inflation or deflation.
- Turing_Machine 5y agoWhen, in recent memory, has the amount taken out in taxes exceeded the amount spent? Ever? You are arguing a hypothetical case where the government takes in more in taxes than it spends, thus creating a trend toward deflation. But that never happens. Like, ever.
- coralreef 5y agoThe government could spend less and tax more, but this is politically and socially unpopular, so unlikely to happen. But its not like its not possible. Some countries have fiscal surpluses. Canada had a surplus in 2018 [1]. I don't see what I'm arguing, and none of it is hypothetical, this is just basic economic theory. It is possible for government spending to be financed by borrowing rather than money creation, resulting in no change in the monetary base. Those mechanics I'm less educated about. [1] https://www150.statcan.gc.ca/n1/daily-quotidien/201118/dq201118b-eng.htm https://www150.statcan.gc.ca/n1/daily-quotidien/201118/dq201...