The government doesn't need to balance its budget like a household from "summary" of The Deficit Myth by Stephanie Kelton
The notion that the government must operate its budget in the same way a household does is deeply ingrained in our collective understanding of economics. We are taught to believe that just like individuals, the government must balance its books, live within its means, and avoid excessive debt. This analogy is frequently used by politicians and pundits to justify austerity measures, cutbacks in social programs, and other policies that prioritize deficit reduction above all else. However, this comparison is fundamentally flawed and misleading. Unlike a household, the government has the unique power to issue its own currency. This means that it can never "run out of money" in the way that a household can. The government can always create more money to pay its bills, regardless of its tax revenue or borrowing capacity. This ability to issue currency gives the government an enormous amount of flexibility when it comes to managing its budget. It can spend money into the economy to support growth, create jobs, and invest in critical infrastructure withou...
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