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by username90
1993 days ago
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If a politician funds all their initiatives via debt instead of taxation in order to get popular support and thus push the problems down to the line that is a pretty shitty thing to do, but it is fine sometimes you have to do it and there is a tradeoff. But when they then argue "Taking on debt is actually a good thing, don't blame me for doing it I had to do it! Everyone does it! Paying off debt is actually a bad thing to do for governments!" they crossed the line and I can no longer consider them as good people. So I used those words since that is what they are, shitty people deserve shitty treatment. |
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You essentially block yourself of improving yourself by realising you might be wrong about something
It sounds to me like you think of a national economy as a household budget. Taxes are income and welfare is expenses, you take loans from banks, which have interest and needs to be paid back or you get punished
It's a nice and simple explanation, which also happens to be 100% wrong
Government debt have no interest and there's no creditor who needs to be paid back. Whenever the Swedish government prints 100 crowns, it goes 100 crowns more into debt
Whenever it gets 100 crowns in through taxes it resolves 100 crowns of debt
National debt is not the same as private debt. They're two completely different things, that unfortunately have kind of similar names
National debt is simply the amount of the national currency in circulation. To be "debt free", Sweden would have to remove every single crown from circulation, which obviously is not a good idea for the economy
Additionally - the government does not use taxes to fund spending. Swedish crowns are essentially worthless to the Swedish government, because they own the money printing press and could make infinite money if they wanted to
If parents setup a system for their kids, where they get small paper notes for doing chores, which can be traded in for the daily WiFi password, the notes have no value for the parents and the WiFi would work without the kids paying chore notes, but they're still useful because they facilitate the "doing of chores" and have value to the kids because of the "WiFi tax"
In other words the purpose of taxes is to create demand for the currency to match the supply the government is creating by printing more money. By having a demand for the currency, the government can use it to pay people to do "chores" it wants done by simply turning on the money printer, then collecting taxes at a later date