MMT and Taxing the Rich

(This post first appeared on my Patreon page.)

I don’t consider myself an MMTer, but there is basic Keynesian concept which has been associated with MMT, which is both true and important. For the federal government, taxes are not about raising revenue, taxes are about reducing consumption to prevent inflation.

The point is that the federal government does not need taxes for revenue, since it can just print money. It instead taxes to create the room in the economy for government spending. This...