Imagine the outcome if the cities functioned with their own currencies that they could produce on demand at no cost and distribute to the schools to achieve the best outcomes. Then the money is no longer a factor to consider and the discussion must be focused on resources balanced to needs, which would greatly favor investing in underperforming schools over those with less need.
AOC understands that all macroeconomics begin with finite resources and infinite money with a sovereign fiat currency regime. She also understands that both taxation and debt are currency drains, not revenue for spending. Spending is required prior to any collection of taxes or borrowing and “funds” both, not the other way around. The monopoly issuer of a fiat currency never has any reason to borrow to “fund” anything, and can’t actually increase its total currency by doing so as it must spend in deficit before reserves are available to purchase debt.
The currency-issuing government never “needs” anyone’s money to spend as long as the spending is within the restraints presented by potentially available resources and contributes to future productivity. Accepting the word of vastly underperforming career politicians who tell us the government can’t provide for its citizens and manage the economy when it has access to unlimited funding is the primary source of America’s decline. Any misery in this economy that can be mitigated with additional spending is entirely a political choice, not economics, and those politicians should be praying that the people never figure that out.
The only way they can cover their asses is to promote the misconception of our fiscal budgeting at the national level working like our kitchen table budgeting at the personal or state level. It resonates with the majority who are econ illiterate but is not sustainable or in the best interest of the people. It means overdependence on private debt and extreme susceptibility to business cycles as GDP growth sufficient to roll over private debt must be sustained. It also falsely vilifies recipients of automatic stabilizers as “costs” to taxpayers and places supply chains at risk while promoting class/racial division.
