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Financing doesn't matter. Modern Monetary Theory adopted
Posted on: February 11, 2019 at 22:35:02 CT
TigerMatt STL
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by AOC is the idea behind it. How does MMT sound to you?
"As the national government is the currency monopolist, it is the only supplier of currency for the nation. In other words, since the government is in a position of authority to declare a unit of account, to impose tax obligations denominated in that unit of account, and to determine the ‘money thing’ that it will accept as payment for taxes, and to issue the ‘money thing’ denominated in its chosen unit of account that people need to pay their taxes, and to prescribe punishment for not paying the tax, the private sector is not in a position to demand a price in that unit of account from the national government for its goods and services, or for its labour. The national government determines the price that it is willing to pay for goods and services and for all labour offered to it.
Put simply, because the national government is the currency authority, it alone denominates (prices) all obligations in its unit of account.
The private sector now brings its goods/services and its labour to the national government, and the government declares that it will pay so many dollars for the goods/services and labour. The private sector can do nothing but accept what the government is willing to pay because there is no other means available of obtaining the tax credits necessary to extinguish the tax liability. The national government then generates its own money thing (tax credit) denominated in its chosen unit of account and “pays” the private sector for the goods/services and for the labour. It does this by crediting bank accounts: Making numbers larger."
"As the national government is the currency monopolist, it is the only supplier of currency for the nation. In other words, since the government is in a position of authority to declare a unit of account, to impose tax obligations denominated in that unit of account, and to determine the ‘money thing’ that it will accept as payment for taxes, and to issue the ‘money thing’ denominated in its chosen unit of account that people need to pay their taxes, and to prescribe punishment for not paying the tax, the private sector is not in a position to demand a price in that unit of account from the national government for its goods and services, or for its labour. The national government determines the price that it is willing to pay for goods and services and for all labour offered to it.
Put simply, because the national government is the currency authority, it alone denominates (prices) all obligations in its unit of account.
The private sector now brings its goods/services and its labour to the national government, and the government declares that it will pay so many dollars for the goods/services and labour. The private sector can do nothing but accept what the government is willing to pay because there is no other means available of obtaining the tax credits necessary to extinguish the tax liability. The national government then generates its own money thing (tax credit) denominated in its chosen unit of account and “pays” the private sector for the goods/services and for the labour. It does this by crediting bank accounts: Making numbers larger."
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Financing doesn't matter. Modern Monetary Theory adopted - TigerMatt STL - 2/11 22:35:02
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