2 ms·
You make a good point, which is that even through an MMT lens, tax and spend should be the norm, since the resource provisioning and supply should balance to av
by hgomersall 3y ago
You make a good point, which is that even through an MMT lens, tax and spend should be the norm, since the resource provisioning and supply should balance to avoid inflationary pressure.
However, I suggest they probably should care given how much policy is guided by an incorrect understanding of the monetary system. The whole concern about deficits and sovereign "debt" is the obvious one.
In addition, a good understanding of why taxation is necessary helps to understand which taxes might be useful and which are not.
Finally (for now!), policy options open up when you understand this stuff properly that make no sense at all through the state-as-a-household view.
Politicians need to be held to account and an ignorant population is not able to do that.