Comment on This sign says it all.
Ottomateeverything@lemmy.world 10 months agoYes, they both create and delete money. That doesn’t mean that the two processes need to be equal or balanced.
Your purchases do, or someone is owed their portion of the transaction. That’s not the case when the government is writing bonds or appropriating funding to programs. They can create money freely, regardless of the tax they collect. Taxes serve a different purpose.
lud@lemm.ee 10 months ago
That would increase inflation drastically, which is something governments absolutely don’t want.
They have inflation to be around 1-2%. Less is no good, because rich idiots would just hoard money instead of investing it. More is also no good because saved money would just disappear quickly.
Ottomateeverything@lemmy.world 10 months ago
Tell that to Japan. One of the highest spenders. Still stuck in perpetual for over 20 years at this point.
It’s not that simple.