MMT Fiscal Principles
”In most budgetary discussions, it is erroneously assumed that the national government has a financial constraint and has to budget like a household.
The analogy neo-liberals draw between household budgets and government budgets is false. Households use the currency and must finance their spending.
However, government issues the currency and must first spend (i.e. credit private bank accounts) before it can tax (i.e. debit bank accounts). The claim that governments must tax or borrow to ‘finance’ its spending is false under a fiat-currency system.”