pull down to refresh

42 sats \ 1 reply \ @denlillaapan 29 Oct \ parent \ on: Which is Worse: Taxes or Fiat Money? econ
so the first premise is just off: under fiat (i.e. USA today) isn't paying with new money.
  • M2 is flat
  • Fed balance sheet is shrinking
  • and Fed seigniorage revenue to Treasury was always minor (and in the last 3 years has been negative).

There IS NO MONEY PRINTING FOR BONDS

So, fiat needs taxation to avoid debasement, which I think was my original point.
Even so, that doesn't work/answer OP's question...
write
preview
0 sats \ 0 replies \ @Undisciplined 29 Oct
You could only say the first premise is off if there were also no tax revenue paying back the loans. To be fair, I left out the possibility of paying with newly borrowed money, which also applies to both cases and defers the ultimate question of where payment is going to come from.
reply