• MMT Schism?
I go back on line, and it seems that there is some splinter group from MMT that doesn’t like the job guarantee. Sheesh. I think what is happening here (and I could be wrong, as I haven’t been paying too much attention), is that the PKers are generally aware of the political and distributional issues behind economic theories, and so they have an additional reason to splinter off of each other. Mainstream macro aspires towards purely mathematical and scientific aspirations (while advocating proposals that wreck our lives — Friedman praising deflation, Greenspan and Summers advocating financial de-regulation, union-busting, ignoring the housing bubble, etc.). So the heterodox types are aware that their analysis has strong political and distributional consequences and bear the costs with additional disunity. Mainstream econ has agreed (more or less) to avoid these questions and externalizes the costs by dispensing bad advice.
P.S. I am a big fan of the Job Guarantee. That is a no brainer that everyone, even if they do not believe a word of MMT, should support. And it is much better than a basic income guarantee. The JG/ELR makes sense even if we were on a gold standard.
Read it at windyanabasis
The bit on MMT is an appendage to the body of the post which is about wealth, capital values, and rents. As always, rsj is incisive and cuts right to the chase.