Modern government finance

Modern governments have only three methods of finance: taxation, debt, and inflation. All three encompass the problems associated with wealth redistribution, in that resources are expropriated from private hands for the use of government.

Taxation is a transfer of wealth forced on present generations. Debt is a wealth transfer forced on future generations. Inflation is the preferred method of redistribution for all get to participate. Inflation is a rise in prices. A rise in prices is equal to an increase in tax revenues, i.e. higher wages more income taxes collected, and higher prices more sales tax revenue, etc. Thus you see why inflation is the preferred method of debt finance. People often do not make the connection between the increase in prices and the increases in tax revenues.

FDR had a close advisor by the name of Harry Hopkins and his alleged motto was: "Spend-Spend-Spend; Tax-Tax-Tax; Elect-Elect-Elect."

Motto has at least held true in the past!