Hend Abuenein
Active Member
Hi everyone,
David, Suzanne, I didn't know where to post this. So please excuse me.
This has been teasing my brain since the Fed's last unveiled plan of economic "stimulus".
My understanding of QE is that the Fed prints money, injects it in the economy through public expenditure, increasing the money in circulations as well as reducing possibility of a shutdown.
Here's the brain teaser:
If the government of the US can print money and spend it on public services, then why does it need to tax people?
Taxation is how taxpayers contribute to the expenditure on public services they will benefit from (health, education, infrastructure...etc)...but now that Fed found a source of money generation other than taxing people, why don't they stop taxing people as a part of the quantitative easing on the private sector?
David, Suzanne, I didn't know where to post this. So please excuse me.
This has been teasing my brain since the Fed's last unveiled plan of economic "stimulus".
My understanding of QE is that the Fed prints money, injects it in the economy through public expenditure, increasing the money in circulations as well as reducing possibility of a shutdown.
Here's the brain teaser:
If the government of the US can print money and spend it on public services, then why does it need to tax people?
Taxation is how taxpayers contribute to the expenditure on public services they will benefit from (health, education, infrastructure...etc)...but now that Fed found a source of money generation other than taxing people, why don't they stop taxing people as a part of the quantitative easing on the private sector?