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Not directly as far as I know, but federal taxes are the other mechanism by which money can exit the economy. I should have stated as such.
by headbee 4y ago
Not directly as far as I know, but federal taxes are the other mechanism by which money can exit the economy. I should have stated as such.
- NovemberWhiskey 4y agoHow do taxes cause money to exit the economy? The government spends every cent it takes in from taxes (and some more): what happens is just redistribution. So (e.g.) it takes taxes from overpaid SV software engineers and makes Social Security payments, buys missiles from Lockheed Martin, pays interest on debt, etc. No; the Federal Reserve has essentially complete control over the monetary base.
- meragrin_ 4y ago> How do taxes cause money to exit the economy? Less money is printed to cover the current budget.