In 2008 there was only $900 billion dollars in circulation. Much of that money is in foreign banks, owned by foreigners and used to satisfy their nation’s debts with other nations. (That’s a unique and privileged position occupied by the United States. Obama tried to end this advantage by suggesting using a basket of currencies instead. Treason? I think so.)
Now, the US economy is worth much more than $900 billion but the economy doesn’t operate on cash. Actually, the cash aspect of the American economy is probably one of its smallest components. So, under the guise of an economic stimulus Obama added an addition $900 billion dollars. They just whipped it up out of nothing and threw it into the economy.
How did the economy respond? It was like hitting a dead man with a cardiac stimulator. Nothing happened. So, because Democrats throw money at every problem in 2010 they added an additional $900 billion. Again, nothing happened.
True, stock prices went up, but with the purchasing value of every pre-2008 dollar suddenly diluted the rise in stock prices merely reflected inflation. Okay, Democrats thought, maybe we were too fast with the cash. From that point they started adding $87 billion per month in something called “quantitative easing.” How did the economy respond? Nothing. Flat line.
If the government can simply wave a magic wand and get all the money it wants, why does it take taxes from citizens? Further, what is the hidden tax of diluting the money supply? (A coffee pot I bought at Walmart in 2008 was $8. The identical coffee pot a week ago was almost $14; a 57% increase. That, is a hidden tax on my savings.
Hey, Government! Just print whatever you want and leave my money alone. The tax will be paid in the increased cost you have leveled on savers.
‘why does it take taxes from citizens?’
rhetorical question, right?
US Government taxes citizens to control them. Period.
Control of course. Income taxes are perhaps the least efficient way to collect revenue. We come to the same conclusion - income taxes are not for revenues.
That's what Zimbabwe did. Sandwiches soon were priced about Z$100 Trillion (or so.)