Leave it to some idiotic Leftist finance “guru” to get behind the “smartest president ever” in explaining why debt and money created ‘out of thin air’ are necessary, not evil.
That is the title of an article by Paul Solman.
Here is an excerpt from the article:
Let’s say I’m unemployed. The government of my society creates some more money and gives it to me in return for providing a service like filling costly potholes, which are getting more costly to fix with every passing day.
My fellow citizens get a service they can’t buy on their own, and I can now spend the money I get on their goods or services. That should, in turn, encourage them to provide more.
Do you spot the flaws? Let me help.
Government needs to give the money to somebody willing to WORK!
Our government gives money to people for doing absolutely nothing. And the better you are at gaming the system, the more you get. If people did create a product, or perform a needed service, then Solman might have a point…but not necessarily.
“Filling costly potholes” doesn’t require the overhead of government. Put another way: the private sector can do just fine filling potholes; it’s not sending a man to Mars.
Furthermore, what does filling potholes have to do with anything that the Constitution requires of government? Nothing. It’s government overreach and the reason potholes don’t get filled!
In answer to the question of “Where would the money come from?” — here is how the author explained it.
Suffice it to say, in this answer, that when the government (via the U.S. Treasury) borrows from the government (via the Federal Reserve), the Fed creates the money, aka “monetizing the debt.”
The money comes from the American taxpayer, who is not represented in this statement in any way. This is the definition of the fox watching the hen house.