3 ms·

Need a citation or some reading for this because it sounds like something you believe without cause.

• superkuh 2y ago
  It's literally in the 2nd paragraph of the wikipedia article. It's not a controversial statement. https://en.wikipedia.org/wiki/Government_spending https://en.wikipedia.org/wiki/Government_spending >Spending by a government that issues its own currency is nominally self-financing. *However, under a full employment assumption, to acquire resources produced by its population without potential inflationary pressures, removal of purchasing power must occur via government borrowing, taxes, custom duties, the sale or lease of natural resources, and various fees like national park entry fees or licensing fees. When these sovereign governments choose to temporarily remove spent money by issuing securities in its place, they pay interest on the money borrowed.* Changes in government spending are a major component of fiscal policy used to stabilize the macroeconomic business cycle.
• pests 2y ago
  Not saying this was his intent, but this is part of Modern Monetary Theory (MMT) which says governments print money to provide services, and collect taxes as a matter of policy to legitimatize the currency, and for inflation and unemployment controls.