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Sioux County, NWIA | In the simplest terms, taxes are what helps maintains money's value. A government that is a sovereign currency issuer has two way to pay its obligations. It can do that with money it has newly created, or it can do with with money it has collected with taxes etc. Reality is it uses both. If a government were to use only newly created money to pay its bills, the supply of that currency would soon outstrip the demand for it and its value would fall (inflation).
I don’t have a problem with the basic concept of MMT. What irks me is the misuse of it. | |
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Modern Monetary Theory and taxes
