As a side note, I dislike the term "government money," since it makes it easy to forget the the money ultimately comes not from the government but from the people. "Taxpayer money", on the other hand, has a pejorative connotation, since it is often used derisively. Maybe "public money"?
>There's no such thing as "public" money; it always comes from private pockets and ends up in (different) private pockets.
That is just a play on words. Of course individuals are "private"; it's in their capacity as taxpayers (rather than volitional payers) that they collectively constitute the public. "Public" and "private" are terms from economics with established meanings.
>I can't see what's pejorative about taxpayer money. That's whom it comes from.
seigniorage is also referred to as an inflation tax [...] the "inflation tax" is paid by those who hold the existing currency, which results from their holdings of currency becoming devalued through inflation because of the introduction of additional money supply.
That's a fair point to make in relation to a loan that must be repaid. But actual government debt has to be backed by a claim to someone's labour and that someone is the tax payer. If there is no such backing all that fiat money will quickly lose its value.
