I lashed out in frustration with an insult, which wasn’t appropriate. I’m sorry. I was frustrated with how my use of “infinite money” was taken literally, when you as an economist would know that nothing regarding the economy could be infinite. I’m still a bit irritated that your entire disagreement is based on pendantry.
“infinite money” was obviously hyperbole, for the record. They tried to make it seem like it wasn’t obvious, but if they really couldn’t tell then they were being oblivious.
How do you mean it then? Because it’s not clear at all.
The government obviously print money in a form that is sort of as a tax on everyone. Inflation is independently set from the government at something like 2% so the government makes money when the bank print enough to ensure that inflation remains at 2%. But that’s independent if the government so the government absolutely does not have infinite money. They have 2%.
It used to be more but that was seen to be detrimental to the economy and the government, so 1-2% is where most countries set it.
The government absolutely has to manage how it spends money and it can only spend what the economy can absorb which isn’t much.
So maybe it is up to you to explain. Because you seemed to make out that the government can just choose to spend a lot more money with 0 negative consequences. Also for some reason even though the government is able to do this, they don’t.
This entire thing relies on the federal government having the ability to print money that is not backed by a commodity, and does not owe a significant amount of debt to another country. Taxes on the federal level literally don’t fund anything (note that this is not true of local or state taxes). They exist solely to drive demand for the currency. Instead, the upper limit to government spending is the amount of resources and labor available to the government, which is several trillions of dollars worth more than the federal budget. This is what’s known as the real economy. A single trillion is incomprehensible, hence why I called it “infinite money”.
I’m an insufferable dickhead because I took your sources and proved you wrong?
I already know that, I have a degree in the subject.
That’s why most people talk about real money which is not unlimited.
I lashed out in frustration with an insult, which wasn’t appropriate. I’m sorry. I was frustrated with how my use of “infinite money” was taken literally, when you as an economist would know that nothing regarding the economy could be infinite. I’m still a bit irritated that your entire disagreement is based on pendantry.
“infinite money” was obviously hyperbole, for the record. They tried to make it seem like it wasn’t obvious, but if they really couldn’t tell then they were being oblivious.
How do you mean it then? Because it’s not clear at all.
The government obviously print money in a form that is sort of as a tax on everyone. Inflation is independently set from the government at something like 2% so the government makes money when the bank print enough to ensure that inflation remains at 2%. But that’s independent if the government so the government absolutely does not have infinite money. They have 2%.
It used to be more but that was seen to be detrimental to the economy and the government, so 1-2% is where most countries set it.
The government absolutely has to manage how it spends money and it can only spend what the economy can absorb which isn’t much.
So maybe it is up to you to explain. Because you seemed to make out that the government can just choose to spend a lot more money with 0 negative consequences. Also for some reason even though the government is able to do this, they don’t.
Both points need explaining.
This entire thing relies on the federal government having the ability to print money that is not backed by a commodity, and does not owe a significant amount of debt to another country. Taxes on the federal level literally don’t fund anything (note that this is not true of local or state taxes). They exist solely to drive demand for the currency. Instead, the upper limit to government spending is the amount of resources and labor available to the government, which is several trillions of dollars worth more than the federal budget. This is what’s known as the real economy. A single trillion is incomprehensible, hence why I called it “infinite money”.