Chapter 21 Funding the Government: Taxes and Debt—Good, Bad, and Completely Lost

Whatever extent the government is involved in the economy, it needs money to operate, even if it is operating in the most limited manner. Governments only have a few sources from which to get money: (1) taxes, (2) debt, or (3) monetizing its assets (e.g., leasing out oil drilling rights on land it owns). Most large countries tap into all three resources to fund themselves. The mix of revenue generation a government chooses can impact how investments act. As technology gives more voice to more of the citizenry policies on revenue generation will likely shift and it will impact asset valuations.

Taxes are supposed to be used to raise revenue, but they have become an ...

Get That Doesn’t Work Anymore now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.