The government can create money to fund important programs from "summary" of The Deficit Myth by Stephanie Kelton
The government has the power to create money, a fact that is often overlooked or misunderstood in discussions about how to pay for important programs. When we talk about funding critical initiatives, such as healthcare, education, or infrastructure, the typical response is to ask, "How will we pay for it?" This question is rooted in the belief that the government must rely on tax revenue or borrowing to finance its spending. However, this conventional wisdom is based on faulty assumptions about how our monetary system actually works. In reality, the government is not like a household or a business that must balance its budget by bringing in enough income to cover its expenses. Unlike a household, the government has the unique authority to issue currency and set the terms under which that currency is accepted. This means that the government can never "run out of money" in the same way that a household can. Instead of being constrained by revenue, the government's spending decisions should be guided by the real resources available in the economy. When the governm...
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