Why modern monetary theory fails without tax

Описание: Some people claim modern monetary theory (MMT) proves that tax doesn’t matter. They’re wrong. Tax is not about funding government spending—it’s about controlling inflation, creating demand for currency, and sustaining democracy. In this video, I explain why without tax, MMT collapses.

00:00 – Does MMT mean tax doesn’t matter?
01:05 – How government really creates money
02:20 – Why tax is still essential in MMT
03:35 – Spending, resources, and inflation risks
05:00 – Tax creates demand for currency
06:15 – Controlling inflation through taxation
07:30 – Beyond funding: other roles of tax
08:45 – Redistribution, market correction & cycles
10:00 – Tax and democracy
11:00 – Why without tax the economy fails

TRANSCRIPT
A transcript for this video is available at: https://www.taxresearch.org.uk

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ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.

This video was edited by Thomas Murphy.

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This debunks the common misconception that taxes don't matter in Modern Monetary Theory (MMT). Without taxes, MMT simply doesn't work, and the idea that governments can freely engage in money printing without consequences is false. Therefore, taxation is essential for the economic system to function as intended, ensuring effective government spending.