can you believe it? he's chief economist of "John Thomas Financial" http://johnthomasbdmikenorman.com/
about 5 minutes in he tells us its idotic to make the govt collect back the money it gives out before it spends it again. I agree... income taxes are stupid. But there is a limit on seigniorage (as norman refers to it) Seignorage is not unlimited. Money has a demand function... and when you print too much the money becomes worth less. When the govt spends too much goods which the world competes for like food and oil would go up.. Also too much printing can be destructive to the assets in real terms as well --- as the players anticipate more and more inflation.
He totally ignores the other side of the government money equation. The money the government spends has to come from one of three places. 1. Tax revenue. Even if government could give back 90 cents of every dollar taxed this is just a story of robbing Peter to pay Paul. 2. Borrowing. We have already seen what massive government borrowing does to the nation. It cannot grow forever and when interest rates rise it will bury us in debt service. 3. Print The Money. The obvious eventual consequences are Zimbabwe type inflation/devaluation of the currency. A country cannot spend it's way to wealth or every country would be wealthy.
exactly... but as Norman said... I do thinks its stupid for the govt money back from the private sector via income taxes. Its stupid. They can just keep the taxes on govt money and spend more. The more I think about it, the more I see income taxes as purely a function of the govt limiting competition for its preferred cronies. it becomes a lot tougher to accumulate capital and invest or grow competitors. I now see income taxes as theft and destruction of our childrens future.