Voluntary constraints that undermine public purpose from billy blog

 From billy blog  "alternative economic thinking"

Further, the idea that “taxpayers’ funds” will be squeezed to repay debt or service the health needs of the future society is also nonsensical. MMT tells us that taxpayers do not fund “anything”. Taxes are paid by debiting accounts of the member commercial banks accounts whereas spending occurs by crediting the same.

The notion that these “debited funds” have some further use is not applicable to anything. When taxes are levied the revenue does not go anywhere. The flow of funds is accounted for, but accounting for a surplus that is merely a discretionary net contraction of private liquidity by government does not change the capacity of government to inject future liquidity at any time it chooses.