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While an interesting perspective, this is inaccurate. The US government has more leeway than most other countries in the world to spend higher amounts. There
by boringg 5y ago
While an interesting perspective, this is inaccurate.
The US government has more leeway than most other countries in the world to spend higher amounts. There is a theory that has not been accepted by a majority of economists (Modern Monetary Theory) that governments can spend without impact.
The counter theory (which I prescribe to) is that the US government has more leeway to increase their debt burden higher than most countries as a function of being the global reserve currency (and having a long track record, federal reserve separated from political power and a mostly functioning democracy). That has given a bit more tolerance to their higher debt load as well economists have forever underestimated the end point at which that would create problems (also they misunderstood the benefits the US had accrued as a function of aforementioned features of the Union). We are still within the tolerable range. However this misstep by economist has created space for MMT to get traction amongst those who do not understand the economy but need a mechanism to finance their ideas. I believe it can work for a little while but it certainly gets closer to a dangerous situation.
Higher inflation (~>4%) just erodes the power of our dollar and increases costs throughout the supply chain.
The IRS has nothing to do with monetary supply, they only collect taxes on behalf of the people of the country. Monetary supply is controlled by the Federal Reserve and is completely separate.
Based on your comments about the IRS/monetary supply I believe this you should do a full read up on how our monetary system works (not being rude, just want educated conversation here and don't want you to fall victim to poor sources of information/conspiracy theories).