Federal Taxpayers Do Not Fund the Federal Government; The Federal Government Funds Federal Taxpayers
Well that title is blunt, isn’t it? I like blunt. That’s why I chose it. As I always say, blunt cuts through bullshit. It’s my bet that it is sure to cause irritation for those persons who play immature games of semantics with the word ‘fund’. Good.
Anti-austerity is a word, of which, culturally and socially speaking, perhaps the Spartans wouldn’t have approved of. We can accept that. It was a Laconian thing. We wouldn’t understand anyway.
The concept that the US government has no money of its own by design and must tax and borrow to fund its spending is an imaginary concept.
If economics is not made the foundational issue on which all other issues rest for those who consider themselves to be on the “˜left’, there will be no unity””unity being the fundamental requirement for defeating Neoliberalism””and so, the “˜left’ will continue its non-existence and its ineffectiveness.
The end of austerity does mean that were going to allow the deficit to rise, and we dont care. And that is totally honest, because nobody in Britain should care if it rises. The UK Government is what we call monetarily sovereign. Osborne knows this as well, but he doesnt want you to know that he knows.
The reality is this: The Federal Reserve could maintain a zero interest rate policy and the federal government could stop issuing bonds and just spend dollars into existence and tax them out of existence, which is precisely what it does right now. Bonds and tax accounts only obscure the reality.
Since this is a major topic of interest for laypersons, I’m going to explain operationally why your dollars paid in federal taxes are not spent by the federal government on anything.