Wednesday, October 9, 2019

Warren Mosler:
Selected posts from @wbmosler:

"Taxation is the intervention that creates unemployment by design for the further purpose of the state being able to hire those it's tax caused to be unemployed.  The JG works to transition the unemployed back to private sector employment and optimize output".

"Assuming Gov is fully provisioned, it can 'correct it's mistake' by lowering the tax until they return to the private sector.  The JG promotes that transition from unemployment to private sector employment because employers don't like to hire the unemployed, etc. etc".

"The govt. created unemployment, by design, by imposing tax liabilities, for the further purpose of provisioning itself by spending it's otherwise worthless currency.   Residual unemployment is the evidence that the tax liabilities created more unemployed than the gov hired".

"Gov. spending is the awarding of tax credits.  If you call that 'printing money' then taxing is 'unprinting money' as it is the redemption of those tax credits.  So if you're looking for redemption, pay your taxes...  ;)".

"It's about sufficient deficit spending- public + private- to offset desires to not spend income".

"MMT only has the understanding of the source of the price level. Govt is the price setter & what that means is price level is necessarily the prices paid by Govt when it spends or collateral demanded when it lends. But, the Govt thinks that the dollar comes from the private sector and there is no other option but to pay market prices for everything they buy; what happens during these is market prices start coming up which normally would be an one-time event that would reverse if the Govt do not pay those higher prices, but when the Govt pay more for the same thing, then the price remains at that level".


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