Keith Evans
2 min readSep 1, 2018

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AJ would probably have a stroke if he was capable of actually understanding the nuances of economics. Here are some points for him to consider, should he find the courage to check in.

  1. Firstly, it isn’t “his” tax dollars that government spends on programs for the poor and working poor. In fact, it isn’t anyone’s tax dollars that are spent on anything at the federal level, because Congress has a monopoly on creating the currency and taxes can’t be collected until it spends into the non-government sector. This simply means that taxes can’t fund spending on those programs, and it is spending that “funds” taxes, not the other way around. In fact, tax “revenue” is an oxymoron (widely believed by regular morons) as there is no function at the Fed or Treasury that makes tax collections available to spend. “All” spending is via new currency creation and taxes are “canceled” as soon as the currency used to pay them re-enters the government sector and balances out with a unit of “debt” that was created in the government sector at the same time as currency was created in the private sector.
  2. The programs that so many working poor have come to depend upon were never intended to supplement wages. They are “automatic stabilizers” that were intended to prevent a domino effect of layoffs from eroding the economy in business downturns. Without some way of providing a floor for the economy to preserve supply chains of critical commodities the economy could slide into disaster with very little negative impetus.
  3. Major corporations, such as WalMart, have abused this system, knowing that the government will create the public money necessary to supplement the pay of their workers and allowing the massive bonuses and shareholder equity we have seen recently. What was intended to be a backstop for the economy has become the status quo, leaving no economic slack for the working class that remains at the edge of disaster at all times.

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