this post was submitted on 26 Mar 2026
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Modern governments with their own Fiat currencies don't use taxes to pay for anything. The money doesn't get distributed, it gets destroyed to control inflation.
Not how that works. Not how any of that works.
It really is how this works.
It's just that nobody realised until the last couple decades. And now we have a century of inertia behind economic theories that say otherwise. A century of economic theory that's been horrible at predicting the real economy by the way.
But it's not difficult to understand.
If a government can make money out of nothing to pay for anything it needs to (the definition of fiat currency), then it doesn't need to collect taxes to pay for things. If it doesn't need to taxes to pay for things, then what do taxes do? Taxes remove money from the economy, offsetting the money added by government spending from nothing. This is direct inflation control.