Flow of Funds between Government and Non-Government Sectors (Period 1)

• Adapted from chapters 3 and 4 of Stephanie Kelton's "The Deficit Myth"

• Two buckets for two sectors; flows represented via arrows

• Period 1:

              Government                      Non-government

        \                    /            \                    /
         \                  /  Spend: 100  \                  /
          \                /   --------->   \                /
           \              /    Tax:    90    \              /
            \            /     <---------     \            /
             \__________/                      \__________/

continued...