L. Randall Wray

So you weren't out there buying tires or nylon stockings. You were saving in war bonds. And there were other methods too. They used wage and price controls. At the end of the war, we're going to ramp down all the production for the war effort. Think of all those factories that were building tanks. Now we're going to convert those back to civilian use. Now we want households to spend more.

So that would be the time to lower taxes and to get people to spend their accumulated savings so they could cash in their war bonds and start buying consumer goods. That's exactly what we did. So you can use tax increases and tax reductions as a way to first move resources to the government sector, and then second, move them back into the private sector.

So that would be the time to lower taxes and to get people to spend their accumulated savings so they could cash in their war bonds and start buying consumer goods. That's exactly what we did. So you can use tax increases and tax reductions as a way to first move resources to the government sector, and then second, move them back into the private sector.

So that would be the time to lower taxes and to get people to spend their accumulated savings so they could cash in their war bonds and start buying consumer goods. That's exactly what we did. So you can use tax increases and tax reductions as a way to first move resources to the government sector, and then second, move them back into the private sector.

Okay. First, I want to make clear, when I was describing government spending, I was talking about the federal government. State and local governments are very different. State and local governments really do need tax revenue in order to spend. State and local governments do not have a central bank to make payments for them. They really do need taxes. and they need to borrow in order to spend.

Okay. First, I want to make clear, when I was describing government spending, I was talking about the federal government. State and local governments are very different. State and local governments really do need tax revenue in order to spend. State and local governments do not have a central bank to make payments for them. They really do need taxes. and they need to borrow in order to spend.

Okay. First, I want to make clear, when I was describing government spending, I was talking about the federal government. State and local governments are very different. State and local governments really do need tax revenue in order to spend. State and local governments do not have a central bank to make payments for them. They really do need taxes. and they need to borrow in order to spend.

And 48 of the states require a balanced budget. So they do not run deficits as a normal operating procedure. And states and counties and cities can go bankrupt. It has happened. Orange County went bankrupt. And there are severe consequences. They're in a very different situation than the federal government, which is our currency issuer and cannot run out of US dollars.

And 48 of the states require a balanced budget. So they do not run deficits as a normal operating procedure. And states and counties and cities can go bankrupt. It has happened. Orange County went bankrupt. And there are severe consequences. They're in a very different situation than the federal government, which is our currency issuer and cannot run out of US dollars.

And 48 of the states require a balanced budget. So they do not run deficits as a normal operating procedure. And states and counties and cities can go bankrupt. It has happened. Orange County went bankrupt. And there are severe consequences. They're in a very different situation than the federal government, which is our currency issuer and cannot run out of US dollars.

Well, the future of money is that it will increasingly take an electronic form. Even our paper currency and coins possibly have a very limited future.

Well, the future of money is that it will increasingly take an electronic form. Even our paper currency and coins possibly have a very limited future.

Well, the future of money is that it will increasingly take an electronic form. Even our paper currency and coins possibly have a very limited future.