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by eru
763 days ago
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You are mixing things up. There's one part of the government that's spending this money, but they can't print money. They have to borrow it (or collect it as taxes). There's another part of the government, the Fed, that can print money. But by and large, they don't 'spend' it. And they are bound by an inflation target. If inflation goes above target, the Fed sells assets from its balance sheet to remove money from circulation. Borrowing or taxation just shuffles money around. If it has any impact on total nominal spending, that's nullified by the Fed adjusting the money supply to hit their inflation target. You are right, that the point of many government programs seems to be to distribute the pork. But that pork comes from current and future tax payers. |
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