The latest occurrence of Eduardo Garzón: “The public sector does not need to collect taxes to finance itself”

The Economist Eduardo Garzon it gives to talk again. In one of his usual squabbles on Twitter, the very brother of the Minister of Consumption has become entangled with the economist Daniel Lacalle this monday wearing some unusual arguments in a discussion on monetary theory.

In an ode to banknote printing machine, Alberto Garzón’s brother has assured that “money is created and regulated by the public sector, so it does not need to collect taxes to finance itself. And the other way around: the private sector cannot enter anything if the public sector does not create the money first, “according to Garzón.

Lacalle has not been long in getting Garzón out of his mistake by assuring that “the money is not” created “by the state at will. The currency is worth nothing if it is not supported by real demand from the private sector and reserves”.

It is not the first time Eduardo Garzón defends the creation of money “without limits”.

Lacalle has not been the only expert in responding to such nonsense. Francisco Capella has explained in a clarifying thread how most of the money that the State has is due to the taxes it takes from taxpayers.

After Garzón’s statement, many users of this social network logically asked this question: If Garzón is right, then, “Is it no longer necessary to pay more taxes?” The jokes have not been long in coming either:

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The latest occurrence of Eduardo Garzón: “The public sector does not need to collect taxes to finance itself”