Professor Steve Keen: This Is How The Government Prints Money
Market Depth
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Government Spending Creates Money for the Private Sector
Government spending creates money for the private sector without a liability attached to that. Bank Lending is also a form of creating money for us, but it involves a debt for theprivate sector as well. We have a mortgage to pay back, a loan to pay back. So government deficit spending increases the net worth of the public; borrowing from the banking sector does not increase the networth of the public. And when you look at the data, it clearly supports the argument UNI making versus the most pay the debt back nonsense that Neopaticals talk about.
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