Mobilization and Money

The way I say it is the funds to pay taxes and buy tsy secs come from govt spending/lending.
That is, govt is best thought of as spending first, then ‘collecting’ taxes and ‘borrowing.’

And, as a minor correction, govt doesn’t ‘issue money, then spending it’ but in general just instructs the Fed to credit a member bank account.

Mobilization and Money

By J.D. Alt