Dave Johnson on Nostr: 1) When people say the US/UK won't be able to "pay off" debt, what do they think ...
1) When people say the US/UK won't be able to "pay off" debt, what do they think those debts have to be paid off WITH? Gold bars?
Govts stopped hoarding and borrowing gold long go - economics textbooks haven't figured that out.
2) When people say govts need "revenue" before they can build roads, provide health care or bombs etc, ask them where they think banks get the money they loan out?
Hint: banks get the money out of thin air. That's what "modern money" is.
#MMT #modernmonetarytheory
Govts stopped hoarding and borrowing gold long go - economics textbooks haven't figured that out.
2) When people say govts need "revenue" before they can build roads, provide health care or bombs etc, ask them where they think banks get the money they loan out?
Hint: banks get the money out of thin air. That's what "modern money" is.
#MMT #modernmonetarytheory