Against #chatcontrol
blog.cryptpad.org
Something terrible is happening in the EU and we need help to stop it
      • volodya_ilich@lemm.ee
        317·
        13 days ago

        I bet I’m at least as much of a leftist as you are, but taxes don’t pay for public infrastructure. In fact taxes don’t pay for anything. In the EU, taxes are paid in Euros, the same currency that the European Central Bank can create at will. Why would the European states need to collect taxes denominated in the currency the EU creates? They don’t.

        Taxes have many purposes. Most importantly they define the area where a given currency is used (if you tax in a given currency, you force the people to earn it to be able to pay for it). But they also serve to disincentivize certain behaviours (tax on alcohol or tobacco), to remove money from the economy to prevent macroeconomic imbalances (if the state creates too much money without removing enough through taxes, there might be some problems), or simply to reduce inequality by charging more taxes to wealthier people or companies.

        This is an important point, because it shifts the framing of taxes from a made up “we all need to contribute” mindset, to a more realistic “ok where do we want to remove money and by how much, what do we want to disincentivize, and how can we reduce inequality”. And it also shows that states can pay for things without the need to collect taxes for this, for example we saw this during COVID, when sizeable amounts of money were created to give an impulse to the economy and to the people who temporarily lost their income sources.

        • makeasnek@lemmy.mlOPEnglish
          21·
          13 days ago

          And it also shows that states can pay for things without the need to collect taxes for this, for example we saw this during COVID, when sizeable amounts of money were created to give an impulse to the economy and to the people who temporarily lost their income sources

          And surely printing money doesn’t cause inflation right. Value isn’t free. If you have the same demand for a currency and increase it’s supply by 10%, it’s going to cost 10% more of that currency to buy any given item.

          • volodya_ilich@lemm.ee
            1·
            12 days ago

            I’m sorry, but that’s empirically proven false time and time again. That’s not to say we should be creating as much money as possible, but for example I’m an EU citizen. Do you have any idea how much currency was created between 2010 and 2020? Look up any measure of the M2 or M3 monetary aggregate for the EU in that period, and look at the inflation rates for the period.

            If you’re a US citizen, I beg you take a graph of inflation for the USA since WW2, look at the inflationary periods, and tell me: what happened in those periods? Consistently, inflationary periods have been caused by external events such as oil crises, or wars like the current one in Ukraine, or such phenomena. Money creation is a very poor predictor for inflation

            I know the neoliberal dogma has poisoned the public discourse for decades and it seems obvious and common knowledge that money creation leads to inflation. But it really, REALLY, hasn’t been historically the case, and this has been proven empirically time and time and time again.