Keith Evans
2 min readSep 15, 2020

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"Lowering of taxes has created a lack of government funds that allows adherents of neoliberalism to decry current government responsibilities such as Social Security and Medicare by saying, “See! These things are just too expensive now."

Buried in this well intentioned statement is one of the major supporting factors of neoliberalism. That is the mistaken concept that a sovereign currency-issuing government must "find" its own currency, either via taxation or borrowing, to fund its spending. The lie is easily promoted because it is true for anyone who isn't the currency issuing federal government, so it is almost never questioned.

The truth is that, as the monopoly issuer of our currency, the federal government must create currency in the private sector prior to collecting or borrowing it back. One simply cannot collect or borrow what doesn't yet exist. This requires that the currency be "self-funding", as the US dollar has always been by authority of our constitution.

The ruling class subverted this for many years by the self-imposed limitations of the gold standard, but we have been free of those domestically since 1943 when FDR ended the convertibility of the currency to gold. All of the economists you mentioned wrote their various dissertations while those limitations were imposed upon our politicians and they are still read and taught some forty plus years after they were made irrelevant universally by Nixon in '71.

Until we and our representatives realize that our Congress is not constrained by revenue (and doesn't even use it to spend on its priorities) and can "afford" anything that is for sale priced in dollars we will be subject to the whims of the oligarchs and their bankers via a political system they corrupted to their advantage. The best way to deal with the oligarchs is to make them irrelevant to our society. Once we do that, the concept of them being "job creators" will disappear along with most of their wealth.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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