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> Incorrect. Where is the money that had beem loaned by central banks and is now needed to keep infrastructur and our society in general afloat? Our f̵i̵s̵c̵a̵l
by cryptica 2y ago
> Incorrect. Where is the money that had beem loaned by central banks and is now needed to keep infrastructur and our society in general afloat? Our f̵i̵s̵c̵a̵l̵ monetary system is a zero sum game in the end. So where did the money go?
Most of that money which the government created comes back to the government via taxes. High taxes keep the loop short. Like I said, after 10 hops, with just 30% tax, $100 ends up being taxed down to $2.80... So say a corporation receives a $1 billion gov contracts, pays their executives and employees, then their employees pay rent to their landlords, then the landlords pay builders for renovations, etc... 10 hops and only $28 million remains of that 1 billion... $972 million is back in the government's hands whence it originated.
It's just a matter of time before that full $1 billion dollars has hopped its way right back into the government's hands via taxes.
- JumpCrisscross 2y ago> Most of that money which the government created comes back to the government via taxes Super wrong. (At tends of quadrillions of dollars wrong this might be the wrongest economic take I have ever seen.) Total taxes in the U.S. in 2023 were $4.5tn [1]. GDP, a sum of transactions, $29tn [2]. More trivially: the money supply, at $21 quadrillion [3], dwarfs both the federal budget and the Fed’s balance sheet combined, and has almost-monotonously grown over the last century. [1] https://fiscal.treasury.gov/files/reports-statements/financial-report/2023/executive-summary-2023.pdf https://fiscal.treasury.gov/files/reports-statements/financi... [2] https://en.wikipedia.org/wiki/Economy_of_the_United_States https://en.wikipedia.org/wiki/Economy_of_the_United_States [3] https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL