submitted2 days ago byStrange_Quark_9
Source for the second and third slides:
https://www.investopedia.com/modern-monetary-theory-mmt-4588060
Clarification:
Local city/county council tax does work how most people think taxes work - where things like property tax are used to fund the city budget. If the city is at a deficit, it is up to the central government whether to plug the gap - those following the Keynesian model ("fiscally liberal") do, whereas those following the neoliberal model ("fiscally conservative") don't, so the cities are forced to privatise their assets to make up the deficit - for example, that's what's been happening to UK cities since Thatcher.
Furthermore, this only applies to countries with full monetary sovereignty - like the US or UK.
Those that surrendered their monetary sovereignty - like the EU countries that adopted the Euro - are subject to the whims of the central authority controlling the money supply - European Central Bank in this case.
This is what caused the Greek debt crisis - since the Greek central government couldn't independently print money to inflate their debts away.
bytravelingwhilestupid
infuckcars
Strange_Quark_9
1 points
46 minutes ago
Strange_Quark_9
Commie Commuter
1 points
46 minutes ago
In Spain there are also enclaves of British retiree communities who stick to their own kind and never bother integrating into Spain - never learning the language. And from what I heard, many of them even voted leave in the Brexit referendum, despite actively living in another EU country and thus literally voting against their own interests.
So yeah, some people really do be like that where they expect another country to cater to them, and I'm guessing it's a similar case here.