We need to rethink our understanding of fiscal responsibility from "summary" of The Deficit Myth by Stephanie Kelton
Our current understanding of fiscal responsibility is deeply flawed. We have been conditioned to believe that the government must tax and borrow in order to spend, that deficits are always bad, and that balancing the budget should be a top priority. But what if I told you that this way of thinking is not only misguided but also harmful?The truth is that the government, as the issuer of the currency, has the power to spend without the need for revenue. This means that deficits are not inherently bad – in fact, they can be necessary to support a growing economy. By rethinking our understanding of fiscal responsibility, we can begin to see that the goal of government spending should not be to balance the budget, but to achieve full employment and price stability. When we...
Similar Posts
Robert Solow's research on economic growth earned him a Nobel Prize in Economics
Robert Solow, a brilliant economist, made a groundbreaking contribution to the field of economics through his research on econo...
Tax laws can vary by state, adding another layer of complexity
The complexity of tax laws is further compounded by the fact that these laws can differ significantly from one state to another...
Austerity measures harm economic recovery
Austerity measures are often seen as a necessary evil in times of economic crisis. The idea is that by cutting government spend...
Economic growth is driven by investment and innovation
Investment and innovation are two key drivers of economic growth. When businesses invest in new equipment, technology, or infra...
Government spending can boost economy
Government spending, in excess of revenue, is a remedy for unemployment and not a cause of inflation. It is, therefore, a justi...
The Importance of Understanding Unseen Consequences
When we make decisions, especially in the realm of economics, it is crucial to consider not only the immediate and visible cons...
Investment influenced by expectations
Investment is influenced by expectations. Entrepreneurs base their decisions to invest on their anticipation of future conditio...
