> It doesn't make any sense to say that the service the city provides is not part of the economy. Your city doesn't issue currency though, so it's still differ

> It doesn't make any sense to say that the service the city provides is not part of the economy. Your city doesn't issue currency though, so it's still different. Neither do corporations. > they spend every penny they take in, because it makes no sense for them to do otherwise unless they are trying to intentionally reduce the amount of money circulating for some reason I am specifically talking about doing that. The article claimed that the stimulus money would never come out of the economy. I suggested it can. I think we're in agreement. Perhaps we're just disagreeing on a finer detail: you say taxing alone does not remove money from the economy - the government needs to then not spend it again. Which I think is a fair way of looking at it but implies some things I'm not sure are definitely right. It's not like there is a vault with gold in it.