How is the United States able to give billions to other countries when we are trillions in debt and how does it get approved?
In: Economics
The federal reserve creates money out of thin air to pay for what Congress allocates to spend.
Congress allocates money to spend based on what lobbyists convince them to spend on. The military industrial complex is the most powerful lobby, so they get the most money.
The creation of money that the federal reserve does creates inflation (creating more dollars out of thin air makes the actual value of a dollar less)
Taxes are the mechanism to destroy dollars & reduce the inflation.
If the Fed creation and the Taxes destruction balance out, then there is no inflation, and the value of the dollar stays the same.
If the Rich and Corporations don’t pay their fair share, then the taxes fall on the middle class, and the value of your dollar decreases.
This is all COMPLETELY different than what a human experiences, where what you take in determines what you can spend.
Everyone that tries to relate those two systems together is lying to you on purpose, and should be burned alive in a tire fire.
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