Posted on 01/18/2019 5:41:57 AM PST by gattaca
Author is implicitly agreeing with this democrat tripe: "...deficit-financed 2017 tax cuts." It's not the government's money, it's the taxpayers'. If a tax cut actually resulting in less government revenue, then the government spending should be decreased, to balance the congressional budget. But tax cuts increase government revenue! Wasn't the latest report that 2018 was a record US government tax collection year? I'm sure the congressional budget will reflect that in decreased spending and taxes, right???? Hah! Let alone is there no balanced budget, there is no budget period. And this government partial shut-down is over a continuing resolution to increase the US borrowing limit, so that the deficit spending can continue. Right?
I know that all governments fear being controlled by others, so none wants to have its currency printed by someone else. But being able simply to print more money, when more spending is wanted, is just taking on more government debt, and deflating the value of the money already in circulation. So easy to understand. And I'm not even an economist. Don't even play one on TV. And didn't stay in a Holiday Inn last night.
The author is acknowledging what... there is somelogic or truth to unlimited spending and printing money to pay the bills? Or is he suggesting he understands why nincompoops like it (or even understand it's ramifications)?
Then there is some veiled and complicated explanation about the downside of this monetary policy.... Really?
Good Lord. The monetary policy espoused by these folks where spending is funded through printed money has been tried. But the article never mentions the root cause and effect of it. It adds currency into the economy without any production. It devalues the money. It creates inflation and makes saved dollars worth less.
Magabee? Zimbabwe? The article missed the basics.
(My first paragraph above is a quote from the posted article. I still can’t figure out how to make the forum automatically identify a quote. Guess I’ll have to use italics or the words “quote” in front of it, etc. Sorry if anyone was confused, or didn’t read the full except of the posted article.)
Hey, it worked so well in Venezuela!!!
I agree. I hear AOC pushing this and calling anyone who disagrees essentially too stupid to understand.
I just like to read what other FReepers have to say.
At least until somebody decides they have no confidence in your currency . . . spent any Confederate currency lately, anyone??
So, a national economic policy premised on the notion of the Free Lunch. They really think we can continue to spend a trillion dollars a year (and rising) of imaginary money indefinitely with no adverse consequences. As we look through the history of civilization can we find a single instance where that’s worked? “Money for nothing and your chicks for free”
People who retired a generation ago retired with savings worth x. Time moved on, government printed money. Now that generational savings is worth MUCH less. Thank you for making the elderly dirt poor, government.
Time and time again it is shown that lowering tax rates increases tax revenue when the tax rates are too high. The problem isn't the income side of the equation - it's the outgo. Until the orgy of spending in congress (BOTH parties) ends, the deficit will continue to soar.
You mean like continentals during the Revolutionary war and greenbacks during the civil war? They either ended up nearly worthless or had to be redeemed by gold.The Constitution prohibited the Federal government from issuing paper currency.
You can look up html codes on the internet. Whenever you use one, you have to format your whole post using html codes. So I use < p > at the ends of paragraphs.
Note that I placed spaces into the html examples so that they would display. The actual functional codes don’t show in the final post.
Judging from how they behave at budget time most Republicans apparently believe in MMT too.
“...deliver benefits today and costs tomorrow, including the deficit-financed 2017 tax cuts...”
Except that the 2017 tax cuts produced increased tax-based income to the government, not an increased deficit, proof that the problem is spending.
You are 100% correct when you say that the problem is out go not income. Which is also the truth for much of the population in this country.
I know people who’s spending will always outstrip their income no matter how much money comes in.
With the government, printing its own money simply ensures that the gap between income and outgo will indefinitely increase.
MMT = UNICORNS
AOC is floating the trillion-dollar platinum coin thing again too.
Sadly Keynsian theory is still all the rage today. We have this obsession with consumption over production. Sadly even a GOP Congress, as we have seen, has no desire to cut spending.
Hi.
I gotta an idea. Make spending equal revenue for a few years. Like maybe a hundred years.
5.56mm
Sometimes it sort of works in some extremely stable nations, for a short time, so therefore we should make it long term policy! Brilliant!
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