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Look, the household doesn't care whether it pays rent to the taxman or to the bank. It loses the income either way.

Yes.

The banker does care, because he gains income in the first case and not in the second. So the banker will have less money to spend. This destroys demand.

No. As i explained. With this logic, the production is useless.

There's no problem with that, because the government can always spend enough to ensure full employment. But that's the spending side, not the taxation side.

Yes and no. If the created money is extracted by rentiers, no jobs will follow. Only asset price inflation of the wealth already in place.

by kjr63 on Sun Jun 5th, 2011 at 05:35:23 AM EST
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