Once you understand Modern Monetary Theory, you realize that our current economic policies are misguided and wildly destructive. Modern Monetary Theory is a school of economics asserting that:
– The currency itself is a simple public monopoly;
— Governments provision themselves by creating taxes that cause people to sell real goods and services to get the funds they need to pay their taxes, and then by purchasing the goods and services they desire with their otherwise worthless currencies;
– Since the economy needs the government’s money to pay its taxes, the value of the currency depends on the prices govt. pays when it spends;
– For a given size of government, unemployment is the evidence that the government is either overtaxing the economy, or spending too little to compensate for any residual desire to save;
– Governments with fiat currencies create money at will when they spend, and destroy money when taxes are paid, further indicating that taxes function to regulate the economy, and not to collect revenue per se;
– The currency is a governmental tool that in a democracy is created and maintained to promote public purpose, and to provide for the general welfare.