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Does this mean I don’t need to pay taxes until the productive capacity is at 100%, because we can print it? How do we know when we’re getting close to full uti
by trts 5y ago
Does this mean I don’t need to pay taxes until the productive capacity is at 100%, because we can print it?
How do we know when we’re getting close to full utilization
- alangibson 5y agoMMT says that taxes exist primarily to create demand for a currency. The government doesn't need you to give it money because it is the source of money. You'll know the economy is neat 100% because inflation will kick in.
- trts 5y agobut there has always been inflation?
- alangibson 5y agoWhen the productive capacity is at a high level of utilization, yes. There hasn't been much inflation in the West for years now. Also, deflation.
- gghhzzgghhzz 5y agoTaxes are required to give the currency value, to counter inequality and produce a stable society, to take money out of unproductive or overheating parts of the economy, and to discourage harmful (to individuals or society) behaviour.
- alangibson 5y agoThat's a pretty good rundown of MMTs thinking. The government spends money into existence. When inflation starts to tick up, tax the money back out of existence.