The Biden-Manchin Deal Will Make Inflation Worse, Not Better.

Keith Evans
6 min readJul 29, 2022

It begins with an obsolete concept of taxing to “pay for” spending at the federal level.

It also applies its tax burden in the one place, at the business/corporate level, where it will not impact the wealthy donor class as it is proposed, but will increase consumer pricing by the amount of the tax plus a profit margin for the shareholders. Let’s break these statements down so you can follow my logic in making them.

Our economy uses a worldwide standard of accounting, the dual entry balance sheet, to track money movement. Since the US federal government is the monopoly “issuer” of our nation’s currency it has an infinite amount of that currency available to “fund” any legislation or appropriation Congress passes and the President signs into law, even if no revenue source exists. The US dollar is self-funding and is created when that law is translated into spending in the private sector. This is now accomplished by simply marking up the appropriate accounts digitally at the Federal Reserve. No “printing” is required. Keyboards are stroked and “new” money is created.

Don’t all entries have to balance in the system?

They do. This covers one entry of the “dual-entry” system, but what about the other in the government sector? That is where the national debt enters the…