After Pelosi once again mischaracterizes government fiscal policy

 

He. Ran. On. It. https://t.co/rCYTzhPEfm

— Stephanie Kelton (@StephanieKelton) July 28, 2021

 I wonder what would happen if, rather than bitching and moaning about Pelosi, people would write her…not to swear at her, but to remind her that the Federal government can’t “tax and spend.” It would be impossible. Where would taxpayers get the dollars to pay taxes if government didn’t spend them out into the economy first?

So sovereign, fiat money creators (like the U.S., not like Greece) are fiscally unconstrained. They don’t have to wait for tax revenue before spending. In fact, they must spend first! It’s spend first, then retrieve some dollars in taxes. The taxes make the money valuable; they do not provision government programs. (“Taxes drive money”)

And what do we call the dollars spent, but not retrieved in taxes? Answer #1: the dollar financial assets of the population (i.e. their savings). Answer #2: national ‘debt.’ It’s analogous to your bank account which is your asset, but the bank’s debt.

What are we owed for a dollar? Answer: a dollar’s worth of relief from taxes.

…Or words to that effect.

It’s important that outrage and insult not be part of the communication. I just have this fantasy (OK, I’m naive) that if Pelosi’s office were to receive say 20 mails saying that, she might just wake up from her zombified state.

Update: Surprise! Billionaire donors encourage Pelosi's position.