Who is Joe Firestone? And Why Should I Care?


I have read many of Joe Firestone’s posts on New Economic Perspectives. This is the first time I have seen a live interview with him. It is especially good interview because the interviewer, Steven D. Grumbine, is very well versed in the topic at hand.

This is a heavy duty session on US money, US debt and deficits, US taxes, and economic policy help for the bottom 90%.

If there is one thing to learn it is that in the United States of America

Taxes Are Not Needed To and Do Not Fund Federal Government Spending..

This is a hard concept to believe, but you need to learn enough about it to understand why this is true, Any Progressive that gets into a debate with a Republican, a Conservative, a Neo-Liberal, or a Libertarian will surely lose the argument if you are arguing from their erroneous frame of reference. You have to be like Steven D, Grumbine and me who start screaming when any Progressive who doesn’t know the above concept and gets into an argument about how any government program will be paid for. It will be paid by the Federal Government creating the money to pay for it. That is how all Federal government spending is paid for. This only applies to Federal government spending.


In the video, there is an important discussion of sector balances. It might help to have the following picture in mind:

Three Pots

This comes from my previous post When Will the White House and OMB Ever Learn About Sector Financial Balances?

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