this post was submitted on 17 Dec 2024
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It’s a common misconception that governments need to collect tax money so that they can finance public works.
In reality, any government that issues its own currency can technically spend as much as it wants to, whether it has the tax base to balance it out or not.
The only reasons to tax are to limit inflation, balance the wealth distribution, and maintain an incentive for people to actually care about your currency.
What did he mean by this?
Printing your own money is equivalent to a flat tax, which is bad for the poors.
But you're spot on, taxes are meant for wealth redistribution.
Wealth is pinned to production and currency is pinned to wealth. You fundamentally misunderstand what wealth, money, and power are and how they function in society. Alienation from society and idealism distort the nature of these subjects. You're right to question the way these things function, but you'll not get much further than MMT or other idealist cul du sacs. If you want to understand how wealth operates as a basis for society, they you'll need to start to study Marx