Selected Posts
Comment: Taxing always has to be looked at as the final step in the process. Never view it as taxing as the precursor to spending. Interest payments to wealthy and big corporations are a political choice, not a functional necessity. It is not efficient monetary policy.
Mosler: However, tax liabilities do come first, which creates sellers of goods and services that can then be purchased by the state. Actual tax payments follow state spending or lending.
Comment: The U.K. government first mobilises real resources by data entry into its spreadsheet, adding numbers denominated in its unit of account, the £. Taxes reverse the process, deleting numbers and driving demand for its currency. Smart folk have known this for decades.
Mosler: I like to begin the story a bit before that, where the UK gov. first imposes a tax liability, payable in £ that come only from the gov or its agents, which creates sellers of real goods and services needing the gov's spending of £ to pay their taxes.
Comment: An MMT critique from the man who bailed out the banks. Others have already shares strong words about this. Some comments from me: https://t.co/1bB3vsZ04N?amp=1
Mosler: MMT teaches sequence- tax liabilities, spending, tax payment/bond purchase- thereby eliminating solvency consideration, and the source of the price level is prices paid by gov. And they have the rate thing backwards. No new tools, just a new (for them) understanding of the tools.
Comment: There are three sentences here. The first is, at the very least, neutral with respect to MMT. I presume Stephanie Kelton would say that affordability is never an issue. She can correct me if I’m wrong on that. The second appears to be ...1/n
Mosler: Think sequence- spending from single supplier of that which is required for tax payment adds the $ that subsequently pay taxes/buy tsy secs, so (nominal) 'affordability' and 'debt burden' inapplicable.
All Posts
Comment: Taxes are, in fact, “demand drains” and so reduce the capacity of the non-government sector to spend. Taxpayers do not fund anything. They just lose or gain purchasing power as the national government manipulates the policy parameters.
Mosler: Tax liabilities precede spending.
Comment: Taxing always has to be looked at as the final step in the process. Never view it as taxing as the precursor to spending. Interest payments to wealthy and big corporations are a political choice, not a functional necessity. It is not efficient monetary policy.
Mosler: However, tax liabilities do come first, which creates sellers of goods and services that can then be purchased by the state. Actual tax payments follow state spending or lending.
Comment: The U.K. government first mobilises real resources by data entry into its spreadsheet, adding numbers denominated in its unit of account, the £. Taxes reverse the process, deleting numbers and driving demand for its currency. Smart folk have known this for decades.
Mosler: I like to begin the story a bit before that, where the UK gov. first imposes a tax liability, payable in £ that come only from the gov or its agents, which creates sellers of real goods and services needing the gov's spending of £ to pay their taxes.
Comment: An MMT critique from the man who bailed out the banks. Others have already shares strong words about this. Some comments from me: https://t.co/1bB3vsZ04N?amp=1
Mosler: MMT teaches sequence- tax liabilities, spending, tax payment/bond purchase- thereby eliminating solvency consideration, and the source of the price level is prices paid by gov. And they have the rate thing backwards. No new tools, just a new (for them) understanding of the tools.
Comment: There are three sentences here. The first is, at the very least, neutral with respect to MMT. I presume Stephanie Kelton would say that affordability is never an issue. She can correct me if I’m wrong on that. The second appears to be ...1/n
Mosler: Think sequence- spending from single supplier of that which is required for tax payment adds the $ that subsequently pay taxes/buy tsy secs, so (nominal) 'affordability' and 'debt burden' inapplicable.