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This is something that the MMT people have hit on that I actually agree with, to some extent—the federal government more or less spends what it feels justified
by jkhdigital 5y ago
This is something that the MMT people have hit on that I actually agree with, to some extent—the federal government more or less spends what it feels justified in spending, regardless of tax receipts. Collecting fewer taxes means larger deficits, but nobody in government has cared about deficits for a while now so why bother ratcheting up tax enforcement? The way things run right now, a dollar removed through taxation might as well have been burned.
(Note that this is specifically about income taxes, not payroll taxes that fund entitlement programs)
- egypturnash 5y agoIf you take more money off the top of the economy and destroy it then you can inject more in the bottom via creation methods like UBI, without causing inflation. You could also just start injecting more money at the bottom via a UBI designed to constantly grow to chase inflation, and watch the real purchasing value of the 1%’s piles of dollars start to decline precipitously as the dollar entered a hyperinflation spiral, but that would mean international trade would drop dollars for another currency that was more stable.