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by dantheman 1195 days ago
Not spending takes it out of the system.
1 comments

I don't really know what you're try to say with this short blurb. Yes, money has to be taken out of the system via taxes and then not re-spent in order to successfully shrink the money supply. But compared with the current approach of creating new money and spending it, raising money through taxes for that spending will be an improvement.

Also focusing on executive spending is a bit of a red herring given how much outflow has occurred from the Fed itself over the past few decades via low interest rate loans. Basically rather than letting the gains from technology and offshoring accrue throughout society (via price deflation), or be spent purposefully (executive spending), the Fed has been squandering these gains to create an asset bubble.