TIME GOVERNMENTS LEARN “WHERE’S THE MONEY COMING FROM?”

Warren Mosler

Warren Mosler could advise our shock jocks, as well as our politicians:

Seven Deadly Innocent Frauds of Economic Policy

1. The government must raise funds through taxation or borrowing in order to spend. In other words, government spending is limited by its ability to tax or borrow.

2. With government deficits, we are leaving our debt burden to our children.

3. Government budget deficits take away savings.

4. Social Security is broken.

5. The trade deficit is an unsustainable imbalance that takes away jobs and output.

6. We need savings to provide the funds for investment.

7. It’s a bad thing that higher deficits today mean higher taxes tomorrow.

See http://www.moslereconomics.com/wp-content/powerpoints/7DIF.pdf

Then, Warren himself might take a look at Henry George, in order to see land price as the cause of inflation.