Deficit Owls | Unemployment Is Created By Government And Can Only Be Solved By Government @deficitowls5296 | Uploaded September 2016 | Updated October 2024, 4 minutes ago.
Warren Mosler, one of the founders of Modern Money Theory, discussing the purpose and consequence of tax. The monetary system is a tool to move resources to the government: the government imposes a tax on its citizens, payable only by a token which only comes from the government. In order to get the money to pay the tax, the citizens must work for the government, or must work for somebody else who has gotten the tokens from the government.
Unemployment is defined as seeking paid employment. So, before the tax, there was no unemployment because nobody was seeking work that paid in the government's new money. After the tax but before the government has hired people, everybody is unemployed, because everybody is seeking to get the money they need to pay the tax. As the government pays people and the money works its way to various hands, the unemployment rate drops.
A government deficit is when the government spends (gives out tokens) more than it taxes (takes back tokens). The extra tokens that the government gives out but does not take back end up as savings in private hands. If private citizens don't want these extra tokens, then they will try to buy things with them instead of holding them. On the other hand, if they desire more savings in tokens, then they will cut their spending, in effort to save more tokens. If the government deficit isn't large enough to provide for these savings desires, then people attempting to save will leave unemployment in the economy: there's not enough total spending to purchase all the goods/services that could be produced with everybody working who wants to.
So the unemployment that we actually see in the economy is the result of government failing to run large enough deficits to provide the savings that private entities want to accumulate.
So the only way to eliminate unemployment is for the government to have the proper sized deficit. And in particular, to do so without causing inflation, requires a Job Guarantee program. More about that here: youtube.com/watch?v=KSw0ROvM6QM&index=17&list=PLZJAgo9FgHWZzhpkjtMxIwZns26A0OdFz
See the whole video here: youtube.com/watch?v=ba8XdDqZ-Jg
Like Deficit Owls on Facebook: facebook.com/DeficitOwls
Warren Mosler, one of the founders of Modern Money Theory, discussing the purpose and consequence of tax. The monetary system is a tool to move resources to the government: the government imposes a tax on its citizens, payable only by a token which only comes from the government. In order to get the money to pay the tax, the citizens must work for the government, or must work for somebody else who has gotten the tokens from the government.
Unemployment is defined as seeking paid employment. So, before the tax, there was no unemployment because nobody was seeking work that paid in the government's new money. After the tax but before the government has hired people, everybody is unemployed, because everybody is seeking to get the money they need to pay the tax. As the government pays people and the money works its way to various hands, the unemployment rate drops.
A government deficit is when the government spends (gives out tokens) more than it taxes (takes back tokens). The extra tokens that the government gives out but does not take back end up as savings in private hands. If private citizens don't want these extra tokens, then they will try to buy things with them instead of holding them. On the other hand, if they desire more savings in tokens, then they will cut their spending, in effort to save more tokens. If the government deficit isn't large enough to provide for these savings desires, then people attempting to save will leave unemployment in the economy: there's not enough total spending to purchase all the goods/services that could be produced with everybody working who wants to.
So the unemployment that we actually see in the economy is the result of government failing to run large enough deficits to provide the savings that private entities want to accumulate.
So the only way to eliminate unemployment is for the government to have the proper sized deficit. And in particular, to do so without causing inflation, requires a Job Guarantee program. More about that here: youtube.com/watch?v=KSw0ROvM6QM&index=17&list=PLZJAgo9FgHWZzhpkjtMxIwZns26A0OdFz
See the whole video here: youtube.com/watch?v=ba8XdDqZ-Jg
Like Deficit Owls on Facebook: facebook.com/DeficitOwls
