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Bill Kruse's avatar

Govt creates money (digital info you can spend) the same way I'm creating this comment (digital info you can read). As money is govt IOUs (say the BoE, March 2014 Quarterly Bulletin PDF), taxation effectively destroys it, preventing inflation. Rinse, repeat. There's your future welfare state taken care of. Since it seems highly unlikely there'll be anything like enough jobs to go round even for those who want them, other than create enough money for people to live on via the welfare state, what else are we going to do?

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