We must challenge traditional notions of government spending from "summary" of The Deficit Myth by Stephanie Kelton
The idea here is that we need to rethink the way we view government spending. For far too long, we have been operating under the assumption that the government must operate its budget in the same way that a household does. This notion is deeply ingrained in our collective consciousness, but it is fundamentally flawed. When a household spends more money than it brings in, it must tighten its belt and cut back on expenses. But the government doesn't operate in the same way. Unlike a household, the government has the power to create its own currency. This means that it can never "run out" of money in the same way that a household can. Instead of being constrained by tax revenue, the government can spend money into existence. This is a crucial point that is often overlooked in discussions about government spending. By challenging traditional notions of government spending, we can begin to see that the government's budget should not be viewed as a constraint, but rather as a tool for achieving public purpose. By embracing a new way of thinking about government spending, we can start to prioritize the needs of the people over arbitrary budget targets. This means that we can invest in things like infrastructure, education, and healthcare without worrying about how we will "pay for" them. Instead of being limited by outdated ideas about government finance, we can start to imagine a future where everyone has access to the resources they need to thrive. In order to make this shift in thinking, we need to challenge the prevailing narrative about government spending. We need to educate ourselves and others about the true nature of government finance. By doing so, we can create a more just and equitable society where everyone has the opportunity to live a dignified life. It is time to let go of old ideas that no longer serve us and embrace a new paradigm that puts people first.
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