It is extremely hard to dislodge “household” budget logic from our perspective as that is how we have been taught to relate to money all of our lives. It works well for anyone who “isn’t” the monopoly issuer of fiat currency that is sovereign (has no debt denominated in any other currency) and must get money prior to spending.

The money is paid into the private sector via government’s purchases to provision itself. Taxes establish the private sector’s need for the government’s currency and spending supplies the currency the private sector needs to satisfy the tax. If the government doesn’t create money in excess of what it collects in taxes the people soon figure out that it is leaving them no store of value in that commerce, essentially clawing back all such payments with taxes.

This is literal theft of resources and labor and will not be tolerated very long, even if it is the people pushing for it out of reaction to propaganda and ignorance. Should they never figure it out they will suffer needless deflationary austerity and frequent failure of banking as it is relied on to supply GDP growth and fund the economy, which it can only do by constant growth in extraction and exploitation. The money created by bank debt cannot retire that debt, so it must be “rolled over” into insatiable growth. Any suffering in this economy is entirely a political decision, not economics.