Daily Archives: October 19, 2012

Myth Drives the Budget Fuss

By Thornton “Tip” Parker

Nearly everyone believes that Uncle Sam is like a family that must get money before it can spend.  But that is not true.  A basic function of any sovereign government is to create and run the country’s money system.  Unlike a family, the US government is sovereign.  It creates money and can never run out.  All the words about America’s financial limits mean nothing.

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Modern Money and Public Purpose 2: Governments Are Not Households

Presentation by Warren Mosler and Stephanie Kelton. Presented at Columbia Law School on September 25, 2012 as part of the Modern Money and Public Purpose series.