Over the years, I’ve noticed a very common misconception about how a government raises money. Interestingly, this misconception has been stated by Austrian economists as well as all the other “economists” in the world. The misconception is that government raises money three ways: taxation, printing, and/or borrowing. But in truth, borrowing is just a detour from the only two ways that a government actually raises money: taxation and/or printing. Unless the government is going to default on its borrowed funds, it still needs to pay them back by taxation and/or printing—like it pays for everything else. (Unless, of course, it … Continue reading There Are Only TWO Ways a Government Ultimately Raises Money