• 17. 2. 2025 • H. T. •
We have already established that Governments can create Currency out of thin air. So why do we also have to pay Taxes? According go Moderern Monetary Theroy (MMT), a key reason for imposing taxes is to create demand for that government’s currency. By requiring that taxes be paid in this currency, the government ensures people need it.
Here’s how it works:
- Currency Demand: Taxes compel people to obtain the currency to meet their obligations, creating a demand. Usually under threat of punishment if these obligations are not met.
- Economic Control: With a demand for currency established, the government can manage the economy. So much for the so called Free-trade.
- Value Maintenance: This demand helps maintain the currency’s value in the economy. But is eroded by inflation because Governments always have to ‘print’ more.
So, esentially we have to be productve, trade our time and energy in order to earn Currency that Governments create out of thin air – in order to pay Taxes to the Government. All the while the Government keeps on printing new Currency…
What do you think could be a part of the solution? Maybe We can start with a Better Currency?
