

Monetary policy is a complicated subject, but stating that taxes, in this case tariffs, disappear money from the economy is at best misleading if not outright false. They are part of a cycle. Money is printed. Money is destroyed. If money wasn’t being laundered through the government then they wouldn’t just print money. They’d have no money to invest in printing.
If you are suggesting that taxes are disappeared from the economy then how would you explain government services. The government spent over 6 trillion dollars last year. They spent more than they made including taxes, hence a deficit, so not sure what you’re suggesting at this point.



I’m not going to pretend I’m an economist, but the idea that the government prints money is not new to me. If the government is “funded” via destroying money (because there is an inflation rate they are attempting to keep constant meaning they can spend X for every Y they destroy) then taking in “funding” via tariffs allows them to either print more money to make up for the additional “income” (aka increased government spending ideally on the public good) or need less money from other sources (lower other taxes - not how it happens but theoretically a possibility), or apply that “excess” to the debt (basically print directly to the debt holders). This does not make taxes or tariffs irrelevant. It is the way the government is “funded” since it needs income to maintain inflation. Is this not a correct reading? I’m legitimately open to learning something right now, but replacing “spend” with “print” and “tax” with burn does not really affect anything considering inflation is a constraint. I understand it’s not 1:1 but that does not mean taxes are “disappeared” in any meaningful sense in this context.