Same could be said about your post. It’s very “haha I have a gotcha” vibes.
Yes the government deletes money. And they also create money. That doesn’t mean they do or have to do the same amount of each. They can and do create more than they delete. They’re not funding programs and then making sure they delete the same amount in your taxes. That’s not how modern economics work.
Yes, 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.
Yes this is all true, MMT is a theory. It’s in the name. Yes, it’s controversial.
But those points have nothing to do with the validity of the statements I made, including the ones you quote. It’s a very broad economic theory covering how things should be done etc etc.
My point is not founded on MMT, I referred to it as a “look this stuff up by starting here”. That’s why it’s only mentioned in the edit. The mere fact that this is an even remotely acceptable implies the statements I made is valid - otherwise MMT would fall apart at its seams.
Taxes funding things is indeed a myth, and they’re essentially a money void. Go read up on those specifics if you want to get into it. The video I linked has a literal explanation of this like 30 seconds later. When congress approves programs, they just allocate new funds to it, and move on. There’s no digging up taxes to point towards it.
You could begin making an argument it has implications for the validity and reliability of the sovereign currency, but it has no real relationship to taxes. That’s just not how modern economics work anymore.
Not at all. Look up MMT. Modern monetary theory and economics are well beyond “spend taxes to fund programs”. Governments that issue debts in their own made up currency don’t need to “spend” money, they just give money to the programs they support.
Well if you really want to get technical about it… No programs or spending are really funded by taxes anyway, the government just says “OK” and the numbers in the bank accounts of the companies implementing said program go up. Taxes funding things is just a myth. Taxes just delete money. So technically, nothing is funded by taxes and taxes are just a money void.
Edit: People seem to be down voting because they think this is tinfoil hat BS or something. It’s not. Look up modern monetary theory. Governments with fiat currency don’t need to collect money to pay for things. They just invent and issue more currency. See this video: https://youtu.be/75udjh6hkOs?amp%3Bt=1628
Tell that to Japan. One of the highest spenders. Still stuck in perpetual de flation for over 20 years at this point.
It’s not that simple.