Comment by eucyclos
6 days ago
I think the argument is that governments don't fund public goods through taxes but through issuing currency, while taxes guarantee a demand for currency and prevent its devaluation. Hence the 'function' of taxes really is to 'destroy' money to prevent oversupply.
Not sure I disagree, though of course that's not how the system works formally.
I don’t completely follow the logic yet. If the government stopped collecting taxes, they could only fund services by taking on ever-increasing debt, right? It’s not like money created by central banks just goes straight into the government’s income.