A video explaining modern monetary theory and how with a little Marxism it can benefit everyone.

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[–] 30 points 2 years ago (11 children)

As the amount of currency approaches infinity, the value of the currency approaches zero

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  • [–] [S] 13 points 2 years ago* (4 children)

    So, what hadn't clicked until I watch this video, is that federal taxes don't 'pay for things', they are just the mechanism by which federal government ensures the currency has value: They compel us to pay taxes (via courts, police, etc.) and those taxes must be paid in the same currency, and so we have to do work to acquire that currency, and so it has value.

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  • [–] 5 points 2 years ago* (1 child)

    No, this is not how currency gets or keeps its value. The work itself is what creates value, which is paid back in currency. If you pay taxes, you transfer some of that value you created to the state. The money would not become worthless if the state did not collect taxes. Money is a way to transfer value, not to create it and taxes are like any payment just that, a transfer of value.

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  • [–] 1 point 2 years ago (2 children)

    Money existed before the government started using it.

    The idea that taxes remove money form the economy and government spending prints new money is an abstraction created for macroeconomics to simplify its models. But it's a lossy abstraction, so don't go thinking this is exactly what happens on the real world.

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  • [–] 3 points 2 years ago* (last edited 2 years ago)

    Centralized, minted currencies definitely did not exist before states started using them. Minted currencies were invented multiple times independently across multiple cultures, but one of the biggest through lines between them is that they required a centralized state who held large reserves, and that they were, in every known case, used to support standing armies for those states.

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  • [–] 6 points 2 years ago (1 child)

    Which is bad if you have a lot of money, but not so bad if you have a lot of debt and can still sell your labor and its produce.

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    [–] 19 points 2 years ago* (1 child)

    Interesting take on inflation: One of the big issues is who gets the printed money. Not us. It's the rich and banks, who buyout all of our resources to hurt us.

    Example: 2008 recession, government made blackrock, who then ate up the housing market so that no one owns their home yet they WILL be happy.

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  • [–] 11 points 2 years ago* (51 children)

    Daily reminder that Second Thought (zero Thought) is a genocide defending tankie who ideologically supports ruzzia. https://youtu.be/4qIDOx-Pnzo?si=Bwf2tvCRKgM68FKL

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  • [–] 5 points 2 years ago (3 children)

    Wow this is horrible. I only recently started watching his content and liking it. But this is surprising, also why is this on some other channel?

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    [–] [S] 4 points 2 years ago* (1 child)

    This other video at 29:43 also blew my mind, I just never thought about tax in that way, and it's embarrassing.

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  • [–] 3 points 2 years ago (1 child)

    Summary for the video-impaired?

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  • [–] 12 points 2 years ago (2 children)

    Basic mmt with a socialist touch.

    Debt just means that the government decides to make something happen. It is neither inherently good or bad. It depends on the context. The biggest opponents are capitalist who want to stop good things from happening as this will reduce their profit. E. G. : more public housing would destroy the business case of landlords.

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  • [–] [S] 4 points 2 years ago (1 child)

    Amazing summary, and I'm glad you mentioned landlords. I am having such a struggle lately when people tell me about their 'side hustle' as a landlord, and how they make so much passive income. I just wanna scream "so you feel good about making money doing basically nothing while there are so many people unsheltered, and living paycheck to paycheck?".

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  • [–] 3 points 2 years ago (5 children)

    Never support Second Thought. If you wanna learn about monetary theory and marxism go watch Unlearning Economics.

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