Stephanie Kelton
Stephanie Kelton argues that federal deficits are widely misunderstood because a currency-issuing government operates differently from a household, making inflation and real resource limits more important than budget balance alone.
The federal government is a currency issuer rather than a currency user, meaning it does not need to collect taxes or borrow money before it can spend.
Every government fiscal deficit mathematically creates an exact, dollar-for-dollar financial surplus in the private sector.
The true limit on public spending is not the availability of money but the availability of real productive resources like labor and materials, which manifest as inflation when exhausted.