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this post was submitted on 01 Jun 2024
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Most countries have unlimited finances. They only have limited real resources like labor, concrete, copper, glass, etc. The fact that we still don't understand this and behave as if the metadata of the economy accurately describes reality puts artificial brakes on the solutions of many problems, climate being one of them.
The problem is that if a country treats money as unlimited and without a cost then inflation will mirror that and people in that country will lose their savings, their job will not pay for their bills anymore and so on
It's not as simple as "just spend more"...
Inflation is a symptom of the lack of some real resource. There are many parts of the economies of many countries where there's unused production capacity which simply "turns more natural resources into more stuff" if more money enters that part of the economy, without producing inflation. It's not "just spend more", it's "spend as much as you can on things that you want done, which aren't limited by real resources."
I found Randall Wray's lectures on the topic to be eye-opening. If what I wrote sounds strange, and it might, I highly recommend watching some of them. There are a few recordings on YouTube.