CapuccinoCoretto
@CapuccinoCoretto@lemmy.world
- Comment on Taxes are cool 2 weeks ago:
How should it work?
From what I understand, you want no taxes and governments just quantitative eases their money supply into existence to fund everything? A Hyperinflationary scenario.
- Comment on China can be strong advocate for open, rules-based trade as global tensions rise: PM Wong 2 weeks ago:
Can? Yes. Will? Doubtful.
- Comment on Taxes are cool 2 weeks ago:
Like fortune tellers with delusions of grandeur.
- Comment on Taxes are cool 2 weeks ago:
Sure, but taxation and governments do not equal capitalism.
To your point, perhaps more than hou said, capitalism is exploitation all the way down, not just at the bottom.
- Comment on Taxes are cool 2 weeks ago:
Dilution is fine, but so is export. Your usage of export isn’t right. Denmark can export little tins of butter cookies, but still have buttercookies for sale domestically because they didn’t export all of them. It’s almost never a binary all/nothing act, so not sure why you would object on the implication it did.
Understanding what ylu are trying to say is a bigger issue.
But it’s not difficult to understand.
If a government can make money out of nothing to pay for anything it needs to (the definition of fiat currency), then it doesn’t need to collect taxes to pay for things. If it doesn’t need to taxes to pay for things, then what do taxes do? Taxes remove money from the economy, offsetting the money added by government spending from nothing. This is direct inflation control.This has a lot partially correct in here too, but you’re comitting similar mistakes. The logic is “unconventional”. Might be too much for a convo in a shitpost, but fuckit, you’re interesting, let’s find out. Breaking it down:
If a government can make money out of nothing to pay for anything it needs to (the definition of fiat currency), then it doesn’t need to collect taxes to pay for things.
Fiat currency being an infinitely creatable unit of account is, as you say, money out of nothing. Also, as you say, it can be used to pay for anything it needs. The part you’re missing is “with consequences.” If the number of dollars x velocity of money is roughly equal to the goods and services available in the economy, there is no inflation, even with its fiat nature. If the number of dollars x velocity increases or decreases via fiat mechanics, at the same rate as the total goods and services in the economy, there is no inflation. Econ 101 as you say.
Inflation comes when the number of dollars and/or velocity increase beyond the value of goods and services available in the market. In your statement you said governments don’t need taxes because they can manipulate fiat via quantitative easing to create the money they need to buy things. They can, but it will necessarily create undesirable inflation. Think about it, the economy is the same, the people’s use of dollars x velocity is the same, but government is adding more dollars. Its the very definition of inflation. When governments collect taxes to pay for things, they aren’t creating money, government spending is exactly balanced by reduced taxpayer spending and is not inflationary. Your statement is thus incorrect.
If it doesn’t need to taxes to pay for things, then what do taxes do? Taxes remove money from the economy, offsetting the money added by government spending from nothing. This is direct inflation control.
This feels muddy to my previous point. Gov does need taxes to offset public spending to avoid inflation. Its not taxes or public spending that that are used to actually control inflation. That role in normal times is served by government debt sold on world markets and most importantly the rates paid on it. In emergency situations when that is not enough, quantitative tightening or easing are used.
Going back to the previous definition based on a steady state economy, we can now add inflationary pressures from debt markets. In a global economy, debt is not directly inflationary because the debt buyers trade their claims on goods and services with the government who will spend their money, just like taxes. Oversimplifying a bit here, no “new” dollars are effectively being created in the system, just moved around from creditor to debtor. The interest paid on the debt, is potentially highly inflationary/deflationary. It isn’t straight forward either so for brevity, low rates make borrowing cheaper and can goose the economy by increasing production of goods and services. High rates can similarly restrict investment, slowing the rate goods and services are consumed and produced, slowing velocity.
Governments get into trouble with this because goosing or choking your economy with rates and deficit spending have consequences. If rates are too low, borrowing increases in non-productive, consumer oriented credit. Now the consumer borrowed from their future, but there is no increase in productivity to offset the payback with interest. Like a sugar rush that follows with a sugar crash, its a big headache.
Government have a similar function with deficit spending, but they can inflate their dollars away if borrow to much. They can always pay back their debt, with the caveat being that it is devalued dollars being paid back. The balance of Creditor sentiment and government power determine where rates land at any given time.
All this to say, your understanding of taxes, money supply and inflation doesn’t align enough with how the system really works.
- Comment on Taxes are cool 2 weeks ago:
You:
Not sure how that’s ‘exporting’ inflation.
Me:
the negative impacts of “relatively more dollars chasing relatively fewer goods” are diluted among all global economies using the USD.
- Comment on Getting older is so much fun 2 weeks ago:
The second cummings of Christ.
Fixed it. Thanks.
- Comment on Getting older is so much fun 2 weeks ago:
The second cumming of Christ?
- Comment on Taxes are cool 2 weeks ago:
That’s it! You answered your own question. Because it’s the global reserve currency, it can inflate its money supply and gain the domestic benefits of money for nothing, but the negative impacts of “relatively more dollars chasing relatively fewer goods” are diluted among all global economies using the USD.
It’s a limited and temporary advantage. As the world is finding out the hard way, any dealing with US assets now poses incalculable geopolitical risks. Not just from losing the defacto reserve status, but both from abandoning the rule of law for autocracy as well as from disruptive warmongering, tarrifs, broken deals, loss of trust and the inability to bargain in good faith.
- Comment on Taxes are cool 2 weeks ago:
You’re onto a piece of something, but it’s a partial truth that you’ve perhaps over generalized.
To your point, America is exporting it’s inflation globally so it can buy things with money it doesn’t have. I also agree to your point that neoliberal economics, especially how it is discussed in public through western (American) & bilkionaire owned media and government is a sham. This is some of the kernel of truth you speak of.
You overstate your case when you talk about taxation and economics as a whole. Don’t throw the baby out with the bathwater.
- Comment on Getting older is so much fun 2 weeks ago:
This is a magnificent shitpost. Why bury it under a lesser one? Do not be ashamed of your talent.
- Comment on https://kotaku.com/marathon-content-farm-discord-reddit-posts-bungie-fake-2000682208 2 weeks ago:
This entire article reads like fake controvery as marketing. Yawn.
- Comment on sow sow sow 2 weeks ago:
Forget or spontaneous agriculture? Any computational xenolinguists know how to ask a squirrel about its intentions?
- Comment on Taxes are cool 2 weeks ago:
Feel free to play with your little strawmen, just don’t fall under the delusion that you are having a conversation with anyone but the ghosts in your head.
- Comment on Taxes are cool 2 weeks ago:
Yeah, but can I be the guy who supplies industrial amounts of chlorine, alum, sodium hypochlorite, lime, ferric chloride, sodium hydroxide, activated carbon, polyphosphates, hydrogen peroxide, and ozone for disinfection for my local water treatment plant? Can you spare the steel and engineering brother? I’m so thirsty.
I also have to take a dump. Can I give it to you?
- Comment on Taxes are cool 2 weeks ago:
You’re going to have to cite how carrots were weaponized by the state to legitimize violence.
- Comment on Taxes are cool 2 weeks ago:
I’m pleased that you can conceptually see this “possibility”, for lack of a better word. It speaks of creativity and imagination.
That your conclusion seems locked-in on this possibility as the only solution, is needlessly below your abilities and shows mental rigidity or tunnel vision.
Currency and Taxation CAN and HAVE been weaponized as you described, but so has a carrot. Just because a carrot CAN be used to stab through someone’s eye and pierce their brain, killing them, doesn’t mean that is what carrots are for, or how public policy should treat carrots.
- Comment on Taxes are cool 2 weeks ago:
Funny, but taxes ARE cool. Anyone who disagrees is welcome to do the research by living in any number of failed states.
Don’t be that guy that goes to dinner with a large group of friends then skips out on the bill.
- Comment on Why do people call Michael's house from GTA 5 a mansion? 2 weeks ago:
Because most people are poor, poorly educated and have no concept of scale.
For 90% of humans on earth, it is so far above experience, it is practically a mansion. For another 5% the “prestige” is sufficient to bridge the credibility gap. The remainder don’t play GTA V or talk shit on Lemmy.
- Comment on Melania found her next husband. 2 weeks ago:
“Greetings! My name is Fisto. How can I serve you today?”
- Comment on 2 weeks ago:
Blursed.
- Comment on Me after 3 shots of vodka 2 weeks ago:
Yeah. That one.
- Comment on Is your carbs addiction worth it? 2 weeks ago:
Finally, an actual shitpost.
- Comment on Me after 3 shots of vodka 2 weeks ago:
The manager said “no” called me “vibe killer” as he escorted me out and locked the door behind me.
A meth-head said “welcome to the club” and invited me to IHOP, so, not a total loss.
- Comment on Micron says driverless cars and robots will need 300GB of RAM 2 weeks ago:
Old kinda idiot. Marketing Dept pumping stock with “white paper”.
- Comment on Me after 3 shots of vodka 2 weeks ago:
The good news is my bra is off. The bad news is my manboobs are sagging and the conversation in the room turned awkward.
- Comment on Or a glazed doughnut idk 2 weeks ago:
Yes, but don’t call me Shirley.
- Comment on Im pan so anyone can apply 2 weeks ago:
Tantric -> edging -> gooning -> ??? -> profit?
- Comment on pirate shit 2 weeks ago:
This is way too wholesome to be a shitpost.
- Comment on European wine, chocolate and cars to become cheaper in Australia amid landmark trade deal with EU 2 weeks ago:
Is one better than the other? Inspired by a men at work song to have a sandwich.