I fully agree with everything you wrote, but it didn’t go far enough.
The US dollar is a self-funding public monopoly owned by the citizens, not a product of business or banking. Since the federal government is the sole constitutionally authorized creator of the dollar, everyone else, including states and communities, are “users” of the dollar and must obtain dollars to provide services the people depend on.
Most services of government are provided at the state and local level, which requires that they are paid for via taxation or fees that subtract from the purchasing power of local economies, especially in less populated areas where the costs cannot be as thinly distributed. The federal government is not restrained by revenue in what it spends and only uses taxation as a method of creating demand for its currency, making it the price setter, and controlling inflation.
The biggest economic lie perpetuated by the wealthy and their vast network of support in both government and the media is that the creation of money to meet the needs of the people is somehow detrimental to the economy. This lie even posits the total “net” money supply, dollars created by Congress and not yet destroyed by taxation, as “debt” that taxpayers are on the hook for. The debt is only incumbent on Treasury in that it “owes” a dollar of tax credit to anyone who holds a dollar of US currency. Paying off that debt would require Treasury, via Congress, to tax back all currency in circulation. This would, of course, make payment of private debt impossible and literally bankrupt the nation.
The Treasury supports this lie by issuing bonds equal to that debt misnomer to present the illusion that we must obtain money from the wealthy to “pay for” what the government spends in excess of taxation. Given that the purchase of those debt instruments requires dollars only Congress can create via deficit spending, the process is just another form of welfare for the wealthy and cannot be a “funding” mechanism for spending. Making interest on money created by the government in the banking sector is a pretty good gig if one can get it.
Only the misconception of taxation being “revenue” to the monopoly issuer of the currency keeps the federal government from funding most of the services the states and communities provide at no cost to them. As long as resources and labor are available, which they already are, to accomplish the goals of the spending of the fiat currency that spending will not create monetary inflation. By limiting the role of the federal government to funding, not managing, those goals the inefficiency it is famous for can be avoided and states would be free to innovate in the application of services, benefitting everyone.
