An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, October 23, 2018
Trump says ‘major tax cut’ on the way
Supposedly another "10%" cut before the elections...
More tax cuts = more of a deficit = more risk-free yields on the inherently risk-free debt of the US Government = more welfare proportional to account balance in said debt = more welfare for the banks and the rich.
See how that works? Any deficit spending for the general welfare must be paid for with welfare for the banks and the rich.
In any event, the inherently risk-free debt of a monetary sovereign like the US should yield (given overhead costs) less than 0%.
And that, besides being the right thing, shall solve or help to solve quite a few problems such as the trade deficit and constant fretting over the National Debt since, over time, the National Debt shall be converted to revenue neutral at worst.
More tax cuts = more of a deficit = more risk-free yields on the inherently risk-free debt of the US Government = more welfare proportional to account balance in said debt = more welfare for the banks and the rich.
ReplyDeleteSee how that works? Any deficit spending for the general welfare must be paid for with welfare for the banks and the rich.
"More tax cuts = more of a deficit"
ReplyDeleteNot necessarily...
Not necessarily... Franko
ReplyDeleteIn any event, the inherently risk-free debt of a monetary sovereign like the US should yield (given overhead costs) less than 0%.
And that, besides being the right thing, shall solve or help to solve quite a few problems such as the trade deficit and constant fretting over the National Debt since, over time, the National Debt shall be converted to revenue neutral at worst.