Garth Brazelton takes a Mosler quote and assumes that MMT is agnostic to public v. private debt in offsetting demand leakage. What Warren said is that as fiscal policy, it is a political choice, which is correct. However, MMT economists are very clear that private debt growth is unsustainable since borrowers are revenue constrained, whereas tsys issuance by the currency issuer is not operationally constrained. At the margin, public financing of demand is clearly superior in safety to private borrowing, even though the bulk of total debt is private.
For example, Steve Keen indicated recently that in his view the ratio of public to private debt should be on the order of 35%-65% instead of the present 15%-85%. Scott Fullwiler responded in a comment that MMT economists are in agreement with this.
Read it at Reviving Economics
Mosler - Keen Connection
by Garth Brazelton