Follow

@freemo see my last reply on issuing money and no, MMT doesn't claim we don't need taxes, instead it says we have them for 3 reasons:

1. Enstablish a monopoly, otherwise other private currencies would appear, by creating a demand for credits in national currency
2. Control inflation by acting on domestic demand
3. Redistribute wealth and ensure economic power won't overwhelm political power (i.e. from democracy to capitalism)

Mainstream economists will tell you that taxes finance public spending but it's the opposite: public spending finances taxes on the first place and the amount left in the economy powers our exchanges. This explain why public deficits are physiological.

Otherwise explain me how a State built from scratch can work without spending before and then asking back a minor amount of money as taxes: in this State there is no money how can you get it with taxes? You have to introduced it before, no? And how do you do it without public spending? And if you spend 100 and get 100 with taxes what will you use then?

Ha and this is not MMT. All the economists in the world would agree on this. What economists disagree with is how much deficit we should do. MMT just says: start by guarantee a job to everyone and adjust taxation to control the inflation, then if you want calculate the deficit, that was the amount needed. That's all.

Sign in to participate in the conversation
Qoto Mastodon

QOTO: Question Others to Teach Ourselves
An inclusive, Academic Freedom, instance
All cultures welcome.
Hate speech and harassment strictly forbidden.