Quote:
Originally Posted by nigga pls
If the "powers" are to actually do anything, it requires money
.... If they didn't use tax money to pay for govt projects but instead money they printed, then that money gets added to the money supply, which inflates aka decreases the value of said currency
learn 2 economy
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It depends where said money ends up. You're assuming it will end up back in banks, rather than in circulation. If it stays in circulation, all is well. Inflation only harms the economy [in this scenario] when the money is put in banks, or when individuals hoard insane amounts of cash.
And yes, I know that those banks can then LEND said money and help Jimmy and Johnny, and blah blah blah, but that is not what we are talking about. And that strawman scenario can be burned to the ground when all of the citizens go to the bank and try to withdraw their money, but it isn't there. But I digress.