We can sometimes achieve similar goals from different approaches, but the best methodology is always economic reality. As long as we view taxation as “revenue” for spending we will be forced to view the debt and deficits as a “cost”, just as if the federal budget were actually like a household.
The concept of taxation and bond sales “funding” spending is erroneous from the beginning in describing money. If we can’t accurately describe money we are surely not going to be able to best utilize it to benefit the people. Taxation and borrowing as funding also enable the jealous guardianship over spending that allows covert racism and class envy to become part of the policy dialogue. “It’s MY money government is spending” is false from the start and will always benefit conservative economics.
The reality is that the currency, actually a tax credit from the perspective of the government, is a no-cost commodity that Congress can use to mold our society, only limited to the availability of real resources and labor. This makes mitigation of any suffering a political choice, not economics. Allowing suffering because we want people to suffer is likely much less attractive than not helping them because we can’t “afford” it without large tax or debt increases and the whole fairness diversion.
This isn’t saying we shouldn’t tax the wealthy just because they have more money than is healthy for the economy, or that corporations shouldn’t be forced to reinvest in society or pay a price. It is only saying that inflation constraints are dealt with much differently than is a phony debt that isn’t even a debt. Congress can, and often does, deficit spend without issuing bonds. It just does so for the wrong purpose, mostly the endless war.
The monopoly patent holder of the US dollar simply doesn’t need to acquire dollars from anyone to spend dollars, so all the “pay fors” are moot questions and should be recognized as such. The world of economics changed completely in ’71 when Nixon abandoned the Bretton-Woods agreement and the gold standard, but we have yet to adjust to sovereign fiat currency to the benefit of our society. The investment class that makes money from money understands this completely. It’s just the plebes that have been denied the truth by ignorance and corruption in our political system.
