konki

joined 2 years ago
[–] konki@lemmy.one 0 points 5 months ago* (last edited 5 months ago) (1 children)

There actually isn't such a thing as a "natural rate of unemployment", so all of those 4% are part of the excess productive capacity.

There will always be some people out of work for various reasons

If those people are unemployed simply because their previous contract expired a bit before their new one started (frictional unemployment), then I agree it is totally unproblematic. If it is because there aren't enough jobs going around (structural unemployment), it isn't.

That money comes from somewhere

All money in monetarily sovereign countries come from government spending: It is spent into existence by the central bank marking up the reserve accounts of the banks of the people and businesses it pays to. The money in circulation and saving is simply the difference between total government spending and revenue. It is important to realize the order of operations here: The governments has to spend before it can tax, or else there wouldn't be any money to tax.

[–] konki@lemmy.one 0 points 5 months ago (3 children)

[...] pulls resources (employees, production, etc) from other parts of the economy, increasing the costs of the remaining resources since there's less available.

That is why I specified that there needed to be excess productive capacity for whatever they are buying. As long as the economy is not at full employment, the government isn't bidding up the prices with its spending.

At full employment though, you are absolutely right.

[–] konki@lemmy.one -1 points 5 months ago* (last edited 5 months ago)

Fiat currencies are actually backed by the tax liabilities denominated in them. If you are liable for one of my business cards, else a guy with a gun shows up at your door, you suddenly have demand for my business cards.

[–] konki@lemmy.one 4 points 5 months ago

Then, imagine if the comic printing company had a guy with a gun going around demanding everyone give him an amount of comic books each year. Now suddenly everyone is looking to get the comic books, driving their values up.

This is how taxes are driving the value of modern money.

[–] konki@lemmy.one 24 points 5 months ago* (last edited 5 months ago) (20 children)

All government spending is done by "printing money", at least in monetary sovereign countries like the US, UK, and other countries issuing their own cureencies. The government is the monopoly issuer of the currency and cannot run out of it, just like the scorekeeper of a baseball match cannot run out of points. Taxes are also not for funding the government, but for removing momey from circulation, precisely to curb inflation. (Also to drive the value of the currency by making people demand it to be able to pay their taxes). Thus "printing money" isn't in itself inflationary, as long as the newly created money is spent on something where there is excess production capacity. The question for the government is never "can we afford it", but rather "are the real resources there to achieve it".

[–] konki@lemmy.one 4 points 1 year ago

Kind of looks like Bashar al-Assad.

[–] konki@lemmy.one 29 points 1 year ago (3 children)

And it aint work either.

[–] konki@lemmy.one 27 points 1 year ago (5 children)

Can Lithuania be considered overseas to Germany though?

[–] konki@lemmy.one 5 points 1 year ago

Komala is also the name of a Kurdiah communist party.

[–] konki@lemmy.one 17 points 1 year ago (3 children)

How is the PineNote coming along?

[–] konki@lemmy.one 6 points 2 years ago

It's getting more and more common though.

[–] konki@lemmy.one 3 points 2 years ago (1 children)

"To communists [...] state property". Ah okey, so you just don't know what communism is. Understood.

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