Post #4747579 · Elektrine

2026-09-10 17:52 UTC

Modern Monetary Theory is here to show why this is largely a myth. Let’s lay it out. The US has the ability to print USD. This is currency sovereignty. That debt is largely debt to itself (inter government obligations) If we can always create the money needed for any debts, we can never default on this debt. Taxes should be seen through the lense of a deflationary mechanism instead of a way to actually acquire USD. Thus, the national debt is fairly meaningless and is intentionally used by conservatives as a way to advocate for spending cuts that would help average Americans.

Replies (3)

@Karmanopoly@lemmy.world 2026-09-10 21:53

If you think printing money is a solution to the problem then you’re just as dumb as the administration

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@prole@lemmy.blahaj.zone 2026-09-11 05:07

This only remains true as long as the USD remains the world’s reserve currency. Something that has not been a sure thing lately

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@Voroxpete@sh.itjust.works 2026-09-11 01:01

You need to continue to think this through. If taxes are a deflationary mechanism because they remove money from circulation, then that would imply that the opposite is also true; that putting too much money into circulation is, broadly, an inflationary mechanism. There’s a lot of nuance I’m skipping over there, but that’s exactly my point. You’re taking a very basic, very one dimensional view of MMT and treating it as a license to spend infinite money, when that’s not actually what the theory says at all.

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