And third, the money could be cancelled by way of tax if it is necessary to do so to control inflation. But this is possible because the spend will become someone’s income. And they will be taxed on it. And when they spend the net proceeds after tax the recipient of that spending will also be taxed, and so on, until the tax is recovered. So the spend pays for itself, eventually. But along the way it will create economic growth, redistribute income and wealth in society and reduce hardship. And all by simply letting money flow from the government and back to it, in due course.
If this were true then there would be no outstanding stock of debt from previous government spending. Yet there’s getting on for a couple of trillion of such government debt. Thus the argument don’t work, eh?
Or, alternatively, we could say that we’ve had inflation in the past, therefore government hasn’t been taxing enough. But then that would be to accuse the past of not enough austerity. Possibly an argument that Snippa wouldn’t agree with.