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Old 03-05-2019, 04:05 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,488
MMT and peak humans

The overlay of the EU bureaucracy over the considerable, already existing State bureaucracy reduced the GDP of the European Union by 20%. Over 22 million work for GOV in America. This does NOT take into account all the millions of lawyers and accountants who are employed to assure compliance with State mandates. The Federal government can create new money to pay the bureaucrats. Lower levels of GOV can't do this. The lower levels of GOV squeeze the working class in 2 ways. First, they tax the snot out out of the productive class. Second, they squeeze us for every penny they can get by way of fees and fines. They have over $200 trillion stashed away in their piggy bank.

FED GOV spends about 24% of the GDP into the economy with money collected mostly from taxes. Personal taxes run close to 50%.

In the last several years, there have been few legitimate buyers of Treasury bonds. As a general rule, every additional $1 of taxes reduces the economy by $3. FED GOV is loathe to raise taxes. They can't raise taxes and nobody wants to buy bonds. So, the Treasury just prints new money to finance the FED GOV. It appears that FED GOV now wants to do this out in the open. That is why we hear all this talk of MMT.
Here is a LONG article laying out the possibilities and ramifications.
I'll comment later.

As a counterpoint, here is another article that lays out some serious considerations that are rarely mentioned.
If you read these 2 articles, you will see that we are approaching a nexus that includes;
A rise in State-created "jobs"
A fall in the birth rate
A rise in automation
A rise in the % of people who are unemployable
A rise in State debt to employ people who have no skills that are in demand in the private sector
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