Red Front
Gold Member
- Jul 7, 2022
- 5,253
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- #141
The notion that the US federal government needs a dollar in taxes before it can spend a dollar because its expenditures directly correspond to how much money is received in taxes, is a fallacy and misconception. The US federal government can't go insolvent or go broke. All of the fearmongering about Social Security is unwarranted and nothing more than right-wing propaganda.You ignored what I said and responded to a straw man.
You said they don't have to tax......and then you explained why they do have to tax.
If the US Federal Government needs 40 billion, it doesn't need people to provide it with 40 billion, it simply creates the money and deposits the funds into the appropriate account/s at the FED. For every dollar spent, there's not necessarily a dollar paid in taxes.
Of course not, there could be borrowing. Duh.
The US federal government doesn't need to borrow dollars.
If the government spends its money on national infrastructure, that increases production and hence doesn't lead to inflation. The government also has different ways of controlling and even eliminating inflation, which doesn't involve taxation.
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