Federal taxes don’t actually work that way. The federal government prints its own money. All taxes effectively go into a giant shredder and are unrelated to spending.
I don’t even know where to begin correcting such an insane statement. Why do you think k taxes are collected if it just gets shredded? Sadistic pleasure?
He makes a good point, it’s just to balance the inflation. Take the tax money to offset the federal reserve printing swathes of money to fund government endeavors.
It’s a real theory. From what I understand though the shredder is a thought experiment, not meant to be taken seriously. They do acknowledge that you have to receive money to spend money. they just think of it like a balancing act instead of a 1 to 1 relationship.
Federal taxes don’t actually work that way. The federal government prints its own money. All taxes effectively go into a giant shredder and are unrelated to spending.
I don’t even know where to begin correcting such an insane statement. Why do you think k taxes are collected if it just gets shredded? Sadistic pleasure?
He makes a good point, it’s just to balance the inflation. Take the tax money to offset the federal reserve printing swathes of money to fund government endeavors.
It’s a real theory. From what I understand though the shredder is a thought experiment, not meant to be taken seriously. They do acknowledge that you have to receive money to spend money. they just think of it like a balancing act instead of a 1 to 1 relationship.
You don’t need to receive money to spend money if you print money. The purpose of taxation is to reduce the monetary supply.
In one specific economic theory.
I’m not saying you’re wrong. I’m pointing out that it’s a whole debate.