Explaining Why Federal Deficits Are Needed

[Dovahkiin]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

 

[Dovahkiin]

Fiat money = it's money because we say it is. What could go wrong?

The united states has been a fiat currency regime for decades, we can't apply concepts used under the gold standard to the current system in the same way.

 

[Zander]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

 

[Dovahkiin]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

 

[P F Tinmore]

So there is no liability?

You seriously think there is no liability? The government creates dollars, they are responsible for them.

There is, but that is a different story.

Who does it owe the money back to?

You literally just said there is no liability.

You did.

which is why the government is the source of OUR liability free dollars.​

Dude, it SPECIFICALLY says "OUR" liability free dollars. Re-read my post.

I did read your post.

Who do we owe that money back to?

 

[Dovahkiin]

You seriously think there is no liability? The government creates dollars, they are responsible for them.

There is, but that is a different story.

Who does it owe the money back to?

You literally just said there is no liability.

You did.

which is why the government is the source of OUR liability free dollars.​

Dude, it SPECIFICALLY says "OUR" liability free dollars. Re-read my post.

I did read your post.

Who do we owe that money back to?

I'm not entirely sure what you're referring to here. The government is creating the dollars, they don't really "owe" the money back to anyone.

 

[P F Tinmore]

There is, but that is a different story.

Who does it owe the money back to?

You literally just said there is no liability.

You did.

which is why the government is the source of OUR liability free dollars.​

Dude, it SPECIFICALLY says "OUR" liability free dollars. Re-read my post.

I did read your post.

Who do we owe that money back to?

I'm not entirely sure what you're referring to here. The government is creating the dollars, they don't really "owe" the money back to anyone.

Then what do you mean by deficit?

 

[Dovahkiin]

You literally just said there is no liability.

You did.

which is why the government is the source of OUR liability free dollars.​

Dude, it SPECIFICALLY says "OUR" liability free dollars. Re-read my post.

I did read your post.

Who do we owe that money back to?

I'm not entirely sure what you're referring to here. The government is creating the dollars, they don't really "owe" the money back to anyone.

Then what do you mean by deficit?

Why are you asking so many simple questions?
I'm pretty sure I've explained the national debt. The national debt is literally the saved dollars of people and businesses that have earned the dollars. Bonds, my friend.
Deficit spending adds dollars to the economy, which is necessary since money is not circulated as much as it should be and is being sucked up by the rich. This isn't a bad thing, since we can use the deficit to add more dollars to the economy. However, we do need to make sure we find some way to fix the circulation, it's not very healthy for a large amount of dollars to get sucked up and not used in the economy for anything remotely useful.
To put it simply, a deficit is simply where the "liability free" dollars come from.

 

[Zander]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

 

[P F Tinmore]

You did.

which is why the government is the source of OUR liability free dollars.​

Dude, it SPECIFICALLY says "OUR" liability free dollars. Re-read my post.

I did read your post.

Who do we owe that money back to?

I'm not entirely sure what you're referring to here. The government is creating the dollars, they don't really "owe" the money back to anyone.

Then what do you mean by deficit?

Why are you asking so many simple questions?
I'm pretty sure I've explained the national debt. The national debt is literally the saved dollars of people and businesses that have earned the dollars. Bonds, my friend.
Deficit spending adds dollars to the economy, which is necessary since money is not circulated as much as it should be and is being sucked up by the rich. This isn't a bad thing, since we can use the deficit to add more dollars to the economy. However, we do need to make sure we find some way to fix the circulation, it's not very healthy for a large amount of dollars to get sucked up and not used in the economy for anything remotely useful.
To put it simply, a deficit is simply where the "liability free" dollars come from.

Indeed, when money collects in one segment of the economy, usually at the top, it pinches off the velocity of money causing recessions.

 

[Dovahkiin]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

 

[Zander]

If the government can create all the dollars it needs, then Bernie Sanders will make a great POTUS. He'll keep the presses busy 24/7 to pay for his pie in the sky promises.

Price Tag of Bernie Sanders’s Proposals: $18 Trillion

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

 

[Manonthestreet]

By this logic we should never have experienced 2007......btw how much of the debt is for stuff that doesnt need to be done..........

 

[Dovahkiin]

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Wow, what an absurd statement you've bolded. People create wealth through the pursuit of dollars.

 

[Zander]

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Wow, what an absurd statement you've bolded. PEOPLE CREATE WEALTH THROUGH THE PURSUIT OF DOLLARS.

Government still does not create wealth.

 

[P F Tinmore]

The government literally can create all the dollars it needs, this is an empirical fact. We can never default on our debt unless we play silly political games.

Great! So let's cut taxes to 1%. What could go wrong?

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Indeed, only production can create wealth. Now does monetary policy promote or hinder production?

 

[Dovahkiin]

Silly idea. We should temporarily suspend payroll taxes until we reach full employment though.

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Wow, what an absurd statement you've bolded. PEOPLE CREATE WEALTH THROUGH THE PURSUIT OF DOLLARS.

Government still does not create wealth.

The government provides the drive to create wealth, dollars.

 

[Zander]

Why is it silly? We should eliminate all payroll taxes permanently! According to MMT, the federal government can fund itself entirely through deficit spending. They can print as much money as they need and never run out, or even risk inflation. We could easily afford free college, free healthcare, free housing, and free food for all!

RIght?

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Wow, what an absurd statement you've bolded. PEOPLE CREATE WEALTH THROUGH THE PURSUIT OF DOLLARS.

Government still does not create wealth.

The government provides the drive to create wealth, dollars.

Government provides the drive to create wealth?

That is one of the stupidest things I've ever read! Humans do not need government to desire and create wealth.

 

[Dovahkiin]

Now I know you know nothing about modern monetary theory. Thanks for proving your ignorance. No one in MMT has ever said that deficits can never be a problem. Inflation of any significant measure shouldn't hit until shortages come about.

Actually I know a great deal more than you think. MMT fails because although the government can print unlimited dollars, they cannot create or print WEALTH.

PS- Warren Mosler is a crackpot that proposed a national 30 MPH speed limit, free healthcare, legalization of all drugs, and guaranteed federally funded job for all. He's a nutjob.

Wow, what an absurd statement you've bolded. PEOPLE CREATE WEALTH THROUGH THE PURSUIT OF DOLLARS.

Government still does not create wealth.

The government provides the drive to create wealth, dollars.

Government provides the drive to create wealth?

That is one of the stupidest things I've ever read! Humans do not need government to desire and create wealth.

In the real world, wealth is created in the "quest" for dollars. That is how things are working right now.

 

[EdwardBaiamonte]

In the real world, wealth is created in the "quest" for dollars. That is how things are working right now.

massive wealth from the stone age to here was created when Republican supply siders supplied new inventions! Econ 101!