So this somehow produced money?
Wait until the MMT economists learn that you’ve wrecked their explanation of how money works on the federal level.
I can’t remember ever saying this. The way money operates on the federal level is what changes things not good intentions.
So where did the money come from to trade for those goods and services?
Zep, why do you do this? Do you honestly think you’re swaying anyone’s opinion to your way of thinking with this stuff? You make erroneous claims, then when asked to elaborate ignore and pivot to something nonsensical. This is why I’ve always assumed you were 15 in the computer lab trolling, but it’s been like 5 years at this point so idk.
Is that what I said? YOU are the one who has argued currencies only have value if they can be used to pay taxes.
Let’s make a rational argument here ( I doubt it will have any effect) to counteract this MMT bias bubble.
Let’s say that the US government decides to give every family 10% above there current AGI every year but it must be spent solely on groceries. This is the equivalent of the US issuing money it doesn’t currently have (@castoli therefore the currency issuer). Now there is 10% more available money for the collective resource that is “groceries”. However, the demand for food items has not gone up by 10% (because population growth is generally stable at a rate much lower than this) and the farmers producing the food cannot just up the output of their acreage by 10% on a whim.
Therefore, people generally have more money for food, but no greater food supply to spend it on. They have money but can’t use it.
People see that the injection of these funds really meant nothing and subsequently lose faith that their dollar means anything - devaluing the currency and leading to inflation.
Since a similar thing has been happening for almost 2 years straight, we now see 8% inflation month over month.
So issuing money for no reason does indeed cause inflation.
1 Like
No, but you implied it.
If 10% is only for groceries it may cause inflation in that sector. You know they do have people who study this stuff intensely.
Funny how this occurred during a pandemic and supply chain breakdown. Not to mention the greed of corporations who used inflation as a veil to raise prices artificially.
Was money issued for no reason?
And the VAST majority of them thing MMT is nonsense
1 Like
And what does this have to do with where the money was originated from?
And they are just indoctrinated, like you as evidenced by their trouncing in debates.
Because there were various forms of currency already available and in circulation for a long time prior to the newly formed United States government creating their own official currency.
We already talked about this in either your last thread or this one earlier on, bumblefuck.
1 Like
Nice straw man. It was issued for an unnecessary reason (giving everyone more money arbitrarily as with the COVID payments) to people that didn’t need it to afford groceries in the hypothetical. Therefore unnecessary is equivalent to no reason here.
And still caused inflation because in the hypothetical situation, like in life, consumer need for mandatory goods does not rise as a step function.
Your definition of “trouncing” is a bit lacking.
People see what they want to see … especially when they’ve been indoctrinated
And when the dollar was the only way to satisfy a tax liability, where did it originate from?
How so?
Really? So people’s jobs were destroyed but they didn’t need money? That was unnecessary? What would you consider necessary? So people hypothetically needed the money. Losing their jobs wasn’t enough?
Some people needed the money. I got a payment but would have been okay without it (as I believe many would have had they cut back their frivolous spending). Times get tough. It sucks but it happens.
Happens faster if you follow Marxist BS.