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nojvek | 2 months ago

I was of that mindset until I learned how currencies and central banks work. The government doesn't need our tax money. US dollars aren't a fixed resource. With fractional reserve banking and interest rates, central bank controls how much new money is entering the economy. Taxes are a way to take some money out of the economy. However the economy runs warm at 2-3% inflation on average. Economy can technically run without any taxation if inflation is kept under control, and productivity of goods and services is going up.

State and city institutions get loans just like we do, sometimes at lower interest rates than individuals can. During covid, loan rate was lower than inflation. That is essentially free money.

It's a complex subject. We've been all told that US debt is a massive timebomb that will explode, however many other countries have higher debt:gdp ratio.

I'm not saying one shouldn't pay their taxes. I'm saying don't pay more tax than you need to. US govt can create money out of thin air either via congress approval or fed interest rate.

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drcongo|2 months ago

It's an interesting point, but "US govt can create money out of thin air either via congress approval or fed interest rate" has spectacular knock-on effects that you'd need to wilfully ignore. I recommend David Graeber's `Debt: The First 5,000 Years` for some good reading on the subject.