The idea is that the government prints money to cover expenses. If you could somehow force everyone to hold all their wealth in cash, this would act as a wealth tax.
This doesn't work, however, because with very high planned inflation no one wants to use your currency, and without taxation there's no reason they have to.
They use your currency because they get paid in it. Government spending doesn't disappear into a black hole never to be seen again. [FALSE]>>> Also it's illegal to use other currencies as tender in (probably?) all countries in the world (Zimbabwe uses/used(?) the US dollar but I'm not aware of any other instances).
jefftk|4 years ago
This doesn't work, however, because with very high planned inflation no one wants to use your currency, and without taxation there's no reason they have to.
rorykoehler|4 years ago
rorykoehler|4 years ago
unknown|4 years ago
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