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Posted by Warren Mosler (207.69.137.22) on 13:40:22 03/28/04
In Reply to: Re: National Review Online - Questions posted by Uwe Burkheiser
: Warren, maybe my English is to poor so in different words:
:
: Who finances the pre-state-efforts to build up to the point that the state can plausible threaten penalties? Why would anyone accept a tax credit to provide real goods to that mandatory pre-state-effort during which no penalty can effectively be threatened?
From 'A general framework for the anlysis of currencies and other commodities:'
***In the Chartalist view, the State, desirous of moving various goods and services from the private sector to the public domain, first levies a tax. The State currency unit is defined as that which is acceptable for the payment of taxes. The imperative to pay taxes thus becomes the force driving the monetary circuit. ***
That's all there is- the private sector desires or is stuck with a state that wants to move resources to its domain.
:
: And if the following is your position:
: Yes, without penalty for non payment it doesn't work, as evidenced by currencies that vanish when tax collection ceases.
:
: Does not the penalty for the non-payment of taxes determine the value of the token issued as money rather than the tax itself?
The penalty determines whether value demanded by the state (when it 'spends' that which the private sector needs for nominal compliance) will be realized.
:
: Uwe
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