We should focus on the real resources available to the government, not just the money supply from "summary" of The Deficit Myth by Stephanie Kelton
The government's ability to spend money is not constrained by the amount of money it has in its coffers. Instead, the real limit on government spending lies in the availability of resources in the economy. This means that the government can afford to buy anything that is for sale in its own currency. In other words, as long as there are goods and services available for purchase, the government can always afford to buy them by creating new money. When the government spends money into the economy, it adds financial assets to the private sector. This injection of money creates the demand for goods and services, which in turn encourages businesses to p...
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