Part of How Money Works – FAQ
This shows that basically dollar for dollar, government deficits EQUAL the amount of money the private sector (that’s you and us) end up with. If you make the government deficits smaller, guess who’s pocket it comes out of? OURS!
This applies to Government Debt as well. Government debt equals private sector (that’s you and our’s) savings!
From Stephanie Kelton Tweet:
How many times am I going to be forced to Tweet this graph tonight?
Bottom line: Government's deficit is *our* surplus pic.twitter.com/Fo1PGJI2
— Stephanie Kelton (@StephanieKelton) September 6, 2012
Blue – Red = Green
Government deficits now barely large enough to keep private sector in surplus pic.twitter.com/HvbjfjLl79
— Stephanie Kelton (@StephanieKelton) January 25, 2017
More in How Money Works – FAQ :
- 7 Deadly Innocent Frauds of Money
- Alan Greenspan – US Government can create all the money it wants
- Concise Summary of Money Creation
- Cool MMT Comments from Around the Web
- How the Government Deficit Helps the Economy
- Neoliberal Liberals
- Professor Steve Keen explains why austerity economics is naive
- Professor Steven Hail explains money in a video
- The Rock-Star Appeal of Modern Monetary Theory | The Nation
- The truth is out: money is just created, and the banks are rolling in it
- Think this Money Theory is too much CONSPIRACY THEORY crap?
- To understand economics, you must understand Monetary Sovereignty. Most economists and politicians don’t
- Trade Deficits & Trade Imbalances – Completely Misunderstood
- Warren Mosler, a Deficit Lover With a Following
- What gives money its value?
- Who can really create money? The Treasury or the Federal Reserve?
- Is the Federal Reserve (The Fed) a private entity, not controlled by us?
- Money Summit
- Government Deficits EQUALS Private Sector Surplus
- Outside Money Resources
- Possible Ideas or Throw-Away Ideas