Comments by "Grim Affiliations" (@grimaffiliations3671) on "BREAKING: Kamala Harris casts first tie-breaking vote as vice president" video.
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@kore6078 As a currency issuer, the U.S. government can never go broke. The metaphor of household budgeting that we use to guide spending, that we should not spend more than we earn, should not be applied to a nation with a sovereign currency. The only limitation on government spending is inflation, a situation where too few dollars are chasing too few real goods and services. As long as inflation is kept in check, year-to-year budget deficits and accumulated debt matter little.
The idea that the government collects taxes to fund its operations. Wrong. The government prints money (actually conjures digital money into existence) to pay for everything it does. Spending comes first; taxation comes later. Taxes are a means of ensuring that the economy creates goods and services to buy (how individuals and companies pay their taxes) and to redistribute income. Taxes are not required to pay for government
what is important is not money, but the real productive capacity of the economy. This productive capacity is governed by how many goods and services can be produced, given the talent and energy of the people in the U.S., and the amount of raw materials and land, and other inputs. With the pandemic depressing economic opportunity, there is lots of room for the federal government (the currency issuer) to run large deficits to get money into the hands of people.
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