this post was submitted on 22 Sep 2023
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A video explaining modern monetary theory and how with a little Marxism it can benefit everyone.

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[–] cantstopthesignal@sh.itjust.works 29 points 1 year ago (23 children)

As the amount of currency approaches infinity, the value of the currency approaches zero

[–] davetapley@lemmy.world 13 points 1 year ago* (last edited 1 year ago) (9 children)

So, what hadn't clicked until I watch this video, is that federal taxes don't 'pay for things', they are just the mechanism by which federal government ensures the currency has value: They compel us to pay taxes (via courts, police, etc.) and those taxes must be paid in the same currency, and so we have to do work to acquire that currency, and so it has value.

[–] marcos@lemmy.world 1 points 1 year ago (3 children)

Money existed before the government started using it.

The idea that taxes remove money form the economy and government spending prints new money is an abstraction created for macroeconomics to simplify its models. But it's a lossy abstraction, so don't go thinking this is exactly what happens on the real world.

[–] scv 1 points 1 year ago

Could you provide a source for money before a government?

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