Bobby. wrote on Oct 23
rd, 2022 at 12:45pm:
People ask about what government services we'd cut or stop altogether without MMT?
Education, health, law and order, funds to states, environment, energy, foreign affairs, trade, welfare, pensions, quarantine, tax administration?
The fact is that the interest paid on the loans could have gone towards those important services.
That causes more money printing and a death spiral.
Let's use some round figures to make it easy to understand.
Let's say someone has $1 million is savings which is all in the bank via their own
deposits or superannuation.
Let's say the inflation rate is now 8%.
That person effectively loses $80,000 in one year by inflation.
It's the same as if they were sent an invoice from the tax Dept. for $80,000.
Is that fair on that person?