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TAXES DON'T FUND ANYTHING by Bill Mitchell
When you hear commentators and politicians and the like use terms like “taxpayers’ funds are being mis-spent” etc, you can immediately conclude they do not understand how the monetary system functions. At that point, it is advisable to ignore what they have to say – given it is likely to be erroneous as a result of the initial false premises. The problem is that the public policy debate is largely based on these false premises. As a result, the policy positions that emerge are typically inferior and in many cases extremely damaging to the fortunes of the disadvantaged.
Taxpayers do not fund anything. They just lose or gain purchasing powere as the national government manipulates the policy parameters in search of public purpose. The fact the government doesn’t achieve desirable outcomes (through incompetence etc) is not the point.
http://bilbo.economicoutlook.net/blog/?p=9281
When you hear commentators and politicians and the like use terms like “taxpayers’ funds are being mis-spent” etc, you can immediately conclude they do not understand how the monetary system functions. At that point, it is advisable to ignore what they have to say – given it is likely to be erroneous as a result of the initial false premises. The problem is that the public policy debate is largely based on these false premises. As a result, the policy positions that emerge are typically inferior and in many cases extremely damaging to the fortunes of the disadvantaged.
Taxpayers do not fund anything. They just lose or gain purchasing powere as the national government manipulates the policy parameters in search of public purpose. The fact the government doesn’t achieve desirable outcomes (through incompetence etc) is not the point.
http://bilbo.economicoutlook.net/blog/?p=9281
