Keith Evans
1 min readNov 7, 2021

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Taxation has several benefits to a modern economy, but none of those involve "pay for" things. Our federal government is the monopoly issuer of the US dollar and never needs its own currency back to enable spending. It had to spend the money into existence in the private sector before it could collect taxes or sell bonds to borrow. Neither can be a "funding" mechanism and only draw down excess reserves in the system.

The concept of "pay for" is a political dodge to avoid spending on the public purpose and it is ruining this country with absolutely no pushback from any quarter. It automatically sets up two battles for all legislation. The merits of the program and the funding, which then enlists the most well funded and organized opposition on earth to knock down any such funding for the people.

As long as the real resources and labor the spending is intended to deploy exist, or potentially exist, the spending will not cause inflation with a sovereign fiat currency. With such a currency regime the only limitation to spending is inflation, so Congress can "afford" anything it can resource, regardless of present or past revenue balances.

You'll only hear protests against military or corporate spending when they are compared to what we "could have" in their place. This never deters that spending, but it does drive the fallacy of our government needing to "get" money from somewhere to spend on programs for the people's benefit. Let me know when any politician ever actually cuts the military budget.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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