As the amount of currency approaches infinity, the value of the currency approaches zero
So, what hadn't clicked until I watch this video, is that federal taxes don't 'pay for things', they are just the mechanism by which federal government ensures the currency has value: They compel us to pay taxes (via courts, police, etc.) and those taxes must be paid in the same currency, and so we have to do work to acquire that currency, and so it has value.
No, this is not how currency gets or keeps its value. The work itself is what creates value, which is paid back in currency. If you pay taxes, you transfer some of that value you created to the state. The money would not become worthless if the state did not collect taxes. Money is a way to transfer value, not to create it and taxes are like any payment just that, a transfer of value.
Well, and also by removing currency from general use, raising value by decreasing availability.
Money existed before the government started using it.
The idea that taxes remove money form the economy and government spending prints new money is an abstraction created for macroeconomics to simplify its models. But it's a lossy abstraction, so don't go thinking this is exactly what happens on the real world.
Centralized, minted currencies definitely did not exist before states started using them. Minted currencies were invented multiple times independently across multiple cultures, but one of the biggest through lines between them is that they required a centralized state who held large reserves, and that they were, in every known case, used to support standing armies for those states.
Which is bad if you have a lot of money, but not so bad if you have a lot of debt and can still sell your labor and its produce.
But also bad if you have pay for things like food and shelter. Then you are just bartering which is less efficient than having actual currency. You can't buy or sell someone half a haircut.
Interesting take on inflation: One of the big issues is who gets the printed money. Not us. It's the rich and banks, who buyout all of our resources to hurt us.
Example: 2008 recession, government made blackrock, who then ate up the housing market so that no one owns their home yet they WILL be happy.
It could be given either to workers or to oligarchs.
The postwar model was Keynsian, or demand side, meaning the state supported prosperity of workers.
Supply side has only helped oligarchs.
Daily reminder that Second Thought (zero Thought) is a genocide defending tankie who ideologically supports ruzzia. https://youtu.be/4qIDOx-Pnzo?si=Bwf2tvCRKgM68FKL
Wow this is horrible. I only recently started watching his content and liking it. But this is surprising, also why is this on some other channel?
To hide it. He is also on a podcast with Yugopnik and Hakim, both of which are tankies.
I think it is fine that the channels are separate.
I am happy to receive the general leftist education on ST without bothering with any ML.
This other video at 29:43 also blew my mind, I just never thought about tax in that way, and it's embarrassing.
Summary for the video-impaired?
Basic mmt with a socialist touch.
Debt just means that the government decides to make something happen. It is neither inherently good or bad. It depends on the context. The biggest opponents are capitalist who want to stop good things from happening as this will reduce their profit. E. G. : more public housing would destroy the business case of landlords.
Amazing summary, and I'm glad you mentioned landlords. I am having such a struggle lately when people tell me about their 'side hustle' as a landlord, and how they make so much passive income. I just wanna scream "so you feel good about making money doing basically nothing while there are so many people unsheltered, and living paycheck to paycheck?".
It’s hard to have true empathy for something you have no real concept of.
Never support Second Thought. If you wanna learn about monetary theory and marxism go watch Unlearning Economics.
A place to discuss positive changes that can make work more equitable, and to vent about current practices. We are NOT against work; we just want the fruits of our labor to be recognized better.
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