7 ms·
The federal government can basically print money. The only reason they "need" your tax money is to limit inflation.
by usefulcat 7mo ago
The federal government can basically print money. The only reason they "need" your tax money is to limit inflation.
- mcmcmc 7mo agoYou’re not wrong, unchecked inflation is bad for most people though. Stable currency is pretty important for trade and economic stability. Unless you prefer heating your home by burning stacks of cash
- usefulcat 7mo agoOh, I agree. I never said unchecked inflation was at all desirable or even ok. My point was that local and state governments do need your tax dollars, in the sense that that is literally their income. But for the federal government it's different. If federal tax revenue declines, they can just sell more treasury notes and continue to spend as much as before. In that sense, federal tax revenue has no direct effect on federal spending.