this post was submitted on 22 Sep 2023
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Work Reform

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A video explaining modern monetary theory and how with a little Marxism it can benefit everyone.

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[–] [email protected] 30 points 1 year ago (21 children)

As the amount of currency approaches infinity, the value of the currency approaches zero

[–] [email protected] 10 points 1 year ago* (last edited 1 year ago) (7 children)

So, what hadn't clicked until I watch this video, is that federal taxes don't 'pay for things', they are just the mechanism by which federal government ensures the currency has value: They compel us to pay taxes (via courts, police, etc.) and those taxes must be paid in the same currency, and so we have to do work to acquire that currency, and so it has value.

[–] [email protected] 3 points 1 year ago* (last edited 1 year ago) (1 children)

No, this is not how currency gets or keeps its value. The work itself is what creates value, which is paid back in currency. If you pay taxes, you transfer some of that value you created to the state. The money would not become worthless if the state did not collect taxes. Money is a way to transfer value, not to create it and taxes are like any payment just that, a transfer of value.

[–] [email protected] 1 points 1 year ago

Value is generated by work, but valorization is based on processes of use or exchange. Generally assets have intrinsic value. Fiat currency has no intrinsic value. Its value derives from the state assuring a demand for goods and labor, which will be purchased in the currency, from assuring the availability of investment assets, which will promise a return above an original value, and from regulating the supply, to assure that the values of ordinary goods will remain generally stable.

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