Tax Cuts Are An Expense To The Federal Government

[JohnfrmClevelan]

Here's what a pretty good job looks like:

View attachment 67575472

You know, if you squeezed your graph to about two inches wide, you could make the same data look even more dramatic.

The fact is that inflation simply has not been a problem for the U.S. We have had periods of higher than normal inflation, but those episodes track with the rest of the planet, so they can hardly be blamed on our government.

 

[_.sokoa]

All governments understand monetary sovereignty. Here's a short list of some of them, but by no means all of them:

Seems as you brought a chart showing what happens when governments don't understand their monetary system. Now, if we look at that chart: Zimbabwe, Hungary, Yugoslavia, etc. These weren't doing MMT. These were just cases of:

• External debt in foreign currency
• Collapsed supply chains
• War or politics collapsing (like Weimar Germany)
• Destroyed productive base

Just because you own a car doesn't mean that you actually know how to drive that car. You basically just dropped a list of people who drowned and said "Well see? People know how to swim!" And I want you to show me where MMT is saying "Hyperinflation is impossible."

 

[rahl]

You neglect the increased economic activity and the tax it generates when people have more money left from their paycheck.

This never happens. We have 4 decades of data showing you this. There has never been a magical bump in economic output when revenues are slashed.