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To: ChicagoConservative27

The government does not actually need tax money. It can generate all the money it will ever need by selling Treasuries to money center banks that receive electronic transfers of cash from the Federal Reserve. The Fed literally can create all the money the US economy will ever need now or in the future with a few key clicks in a spreadsheet. The only reason taxes exist is that it forces people to use only US currency to pay them.

Letting the multi-billion businesses keep more money in the private sector rather than giving it back to government is the right thing to do only if they use the money to maintain and grow their capital resources and employ people who earn and spend income. If they just buy back stock or bonds, it doesn’t add economic capacity, and only benefits shareholders.

Paying off student debt benefits the economy if the students use the money to buy real goods and services with the money providing income to businesses and jobs for more people.


16 posted on 08/24/2022 6:44:50 PM PDT by Dave Wright
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To: Dave Wright

“Paying off student debt benefits the economy if the students use the money to buy real goods and services with the money providing income to businesses and jobs for more people.”

Of course the reality is that most are not paying off their student loan(s). That money is already budgeted for something else like their Porsche payment. So the much ballyhooed boost in economic activity is already factored in.

In fact forcing the rest of the country to pay additional taxes to cover that Fed revenue shortfall will more likely result in lowering the overall economic activity.


32 posted on 08/25/2022 5:00:08 AM PDT by ByteMercenary (Slo-Joe and KamalHo are not my leaders.)
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To: Dave Wright

printing money causes inflation, which is a regressive tax that affects the poor most.


35 posted on 08/25/2022 5:55:13 AM PDT by brookwood (Government discriminates against you, and if you complain, calls you a racist.)
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