Fun fact: the U.S. government can never run out of money. Its payments are made digitally, so votes are all that’s needed to authorize spending. Economist Stephanie Kelton says that, contrary to popular belief, federal deficits can be economically advantageous. Our latest Instaread examines the issue.
Government Budgets Are Basically Fake
Politicians often speak as if the government’s money comes from taxpayers, implying that the government can only spend more by taxing or borrowing more. But in reality, federal taxes don’t fund federal spending. The government issues currency as it spends, while taxes serve other purposes like managing inflation and redistributing wealth.
