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.
It is not true. Money is created and regulated by the public sector, so it does not need to collect taxes to finance itself. And vice versa: the private sector cannot enter anything if the public sector does not create money first. I explain it here: https://t.co/0fDUoEVMhF https://t.co/0oBCzd93yZ
– Eduardo Garzón (@edugaresp) November 22, 2021
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”.
No. 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.
That that the currency is an unlimited resource that allows you to finance everything as and when you want is simply false. 👇https://t.co/5FunIpQSrx
– Daniel Lacalle (@dlacalle) November 22, 2021
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.
Eduardo Garzón’s classic tweets @edugaresp.
“The income of civil servants comes from state spending, not from any taxes. That is a myth so that people believe that the state is a parasite. It is just a myth.” pic.twitter.com/gX5DX5JkSm
– Francisco Capella (@fcapellaga) November 22, 2021
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:
How do they create money? Printing? So why do they fry us to taxes?
If it is not necessary to pay taxes, I vote for them.
– Asuncion Leon (@Aasuncino) November 22, 2021
Eduardo Garzón, future Nobel Prize in Economics.
That someone of the level of the brother of the Minister of Consumption is a university professor, should ask us the level of education that is imparted in certain faculties. pic.twitter.com/IFkv2e8KPB
– Wild Guaje (@GuajeSalvaje) November 22, 2021
We would love to give thanks to the author of this article for this amazing content
The latest occurrence of Eduardo Garzón: “The public sector does not need to collect taxes to finance itself”