Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> Taxes do not finance the US government. The US government creates money to finance itself.

Source for this claim? I've never heard this before and it sounds quite absurd.



Well in a nutshell, the US government makes the money. It can never run out. So it isn't dependent on tax revenue to spend.

So the limitations on spending are elsewhere.

This is a good intro:

http://elliswinningham.net/index.php/the-basics/us-currency-... http://elliswinningham.net/index.php/the-basics/us-currency-... http://elliswinningham.net/index.php/the-basics/us-currency-...

Also maybe:

http://bilbo.economicoutlook.net/blog/?p=9281

A rant on deficits:

http://elliswinningham.net/index.php/2017/01/10/deficits-mat...

For more, just look up modern monetary theory.




Consider applying for YC's Winter 2027 batch! Applications are open till November 2.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: