Tax cuts or greater spending? Where do MMTers stand on this? Mosler's proposals are for a suspension of the payroll tax and aid to states. That's it. He leaves it pretty much to the private sector and the states, which have their own budgetary and spending needs. There's nothing in there about national spending, for example on infrastructure, education, basic R&D, etc. And yesterday Stephanie Kelton did a wonderful job on Capital Account, but I felt that she was a bit defensive when Lauren Lyster pressed her on gov't spending. Stephanie seemed to want to veer away from that and channel most of the "stimulus" through the private sector, with some "targeted" investment. Why be shy about saying more government spending is good?
I'm all for tax cuts and I think that a suspension of FICA is a fabulous idea, but here's the problem...wouldn't we just get more of this?
Black Friday 2012
That's not a mob riot. It's a picture of people disposing of their incomes on a bunch of crap they probably don't need (nor can afford--FICA suspension or not) simply because of media hype and retailers who told them to go out and shop.
I love how shows like Capital Account that always complain about government waste. Government waste, government waste, government waste, they keep on repeating it.
What about the waste associated with people blowing their incomes on stuff that'll just end up in a landfill in a year? It's central planning, only central planning corporate sytle. Let's be real...the American consumer is totally manipulated by retailers, advertisers, big business and the media. Spend your money so that corporate profits can go up.
This is where I diverge with the Mosler plan. Personally, I would like to see much greater government spending in areas where this country really needs it: infrastructure, health care, education, basic R&D, alternative energy, public transportation, etc. I'm all for putting money in people's pockets, but do it in a way that adds to the stock of real capital that's going to be needed for the next generation or two.
Christ, we do it for military and war. What about for the public and a better society for a change?