It's not really much of a theory. But, hey, they're not really "economists".
Thanks for the link to her Substack blog. We should all celebrate her right to express her thoughts, but what a dangerous moron. This is one of many quotes that were scary
“If the government wants to boost spending on health care and education, it may need to remove some spending power from the rest of us to prevent its own more generous outlays from pushing up prices.”
Her theory defies any causal review of history, common sense, and current events.
MMT "works" as long as your currency isn't convertible into another currency and no other currency is accepted within your borders. The Soviet Union and China maintained "stable" currencies along with grinding poverty for many years, until they needed foreign goods and it all fell apart.
How about updating the Misery Index, I believe Carter founded that one.
Great article! Thank You!
I give up.
MMT can work in an emergency, like a mobilization to fight total war, when surviving the war is the sole goal of the nation. The last US mobilization of that sort was WW II. It can work permanently in a totalitarian system when taxes can be set at whatever arbitrary level is required to maintain a non-inflationary return path, but the price in that system will be ever increasing corruption to titanic levels that eventually threaten regime survival. It can't work during normal times in a democratic republic. Politicians will always be able to get elected with promises of more free stuff and lower taxes, and then inflation runs away.
MMT describes the way the system works today and every day since the gold standard was dropped. I don't know where to begin picking apart your article because you only offer up criticism of the person. You offer no better theory of how to manage the US fiscal flows. Its amazing that if the bi-partisan government wants $1trln for the defense/war/weapons no one bats an eyelid. The money just magically appears. Put the same system to updating infrastructure or social care and no one can agree on how to magic up the money. The fact that you reference Printing Money shows how ignorant you are about QE. Reserves stay within the system and do notvmake their way into the real world, so QE didn't cause inflation. That would be the supply shock and the over reliance of globalisation. If there was too much cash in the system and it was causing inflation you would destroy that cash by taxation. Taxation doesn't pay for the government spending by the way. The savings that were seen after the stimulus cheques went out has been taxed and destroyed back. But yet inflation is still running high, why? Because of high energy prices. Why is the US a net exporter? So maybe resist this bilge you wrote and come up with a decent way to reduce energy prices.
Dear QTR, What exactly do you dispute about MMT as a descriptive framework? Is it the description of Federal Reserve accounting, or the spending taxing sequence, or the government as the monopoly supplier of that which is necessary for taxes, or that government debt is nothing more than a balance in a Fed savings account? Your piece features screed and lacks analysis. Thank You
This blog post is so misinformed. Two questions: what is the limit of government spending? Can we actually run out of the money we create? If you think long and hard and your response is "inflation," then, congrats, you now understand MMT.
They say we can "never run out of money"...but what they're really talking about is never running out of purchasing power. And when you pursue MMT, you will find that your "money" will lose its purchasing power, until it no longer fulfills the triplicate roles of "money".
Kelton and her Marxist friend, Elizabeth Warren will drag us into a dark hell of debt and collapse.
Government money is all going to zero value. What you want are privacy cryptocurrencies like Pirate Chain, Monero and Dero.
Also, another shout out to true free speech. We can lay out our beliefs and observations so that everyone can decide what is “truth” through learning from each other.
Why are you lying about MMT? What's your objective for spreading this false impression?
Any conclusion based on an infinite set of variables will never have the certainty of a scientific conclusion and therefore, can't be labeled as "incontrovertible and irrefutable natural laws...".
Economics is a philosophy wanting to be a science. Take the humans out of the equations and you may have a science, but leave them in with their infinite decisions and their fear and greed and you are now the meteorologist (also a philosopher) waiting for the next unpredictable storm.
The article was great. However, I am old enough to have suffered under the '70s and '80s inflation and high interest rates which sucked out my net business income. Could you include the actual rate of inflation based on the 1970 CPI index in addition to the watered-down current version?