I believe that MMT will be unsatisfying to most people as long as it concentrates on the administrivia of how the Treasury, Fed, and banks work. It would offer much more if its analyses were expanded to show how top layer surpluses have the same effect as the general public foreign surpluses.
Many people and politicians could understand this quickly. Bernie and Trump, in his more coherent moments, have hit on it, and it is a horse that MMT could ride. It could open the door to a wide range of actions to restore society and the economy by improving the balance of flows between the two layers, including.…
Many other actions can be proposed that may be better than these in addition to a jobs guarantee program. But my basic point is that now, MMT primarily says that federal spending should be increased to improve the lives of most people. It does not say why the increased spending will not quickly float up to those at the top. …
It is more than a coincidence that federal deficits and inequality have grown simultaneously. The upward flow within the private sector links them. For the democracy to remain a healthy, ways must be found to limit the upward flow and redirect it toward the vast majority of the country’s population. MMT could become a more powerful tool for bringing this about by expanding analyses of the sectoral financial flows to show the flows between layers within the private sector.…New Economic Perspectives
Another Dimension
Thornton “Tip” Parker
4 comments:
When has Bernie "hit on it" ?
Fixed pie economics. Because there aren't enough resources and money for everyone.
The whole point of MMT is lost.
Spreading fear always wins.
It takes so much time and effort to argue against BS, I'd rather spend time on good ideas rather than refuting bad ideas.
Every political issue where people spread fear, fear dominates. It's why the stalins usually win over the trotskys. Why mao purged Deng. Why anti-gmo wins over science. Why Hillary's fear of Trump wins over Trump's corrupt hillary. Why orthodoxy's austere sacrifice now to avoid future deficits wins over MMT. Why climate hysteria wins despite all the conflicting data which invalidates. It is the power of Nurse Ratched.
Why people are afraid of everything, I don't know, the fear of dying or losing is more intense than the joy of living or something?
"the fear of dying or losing is more intense than the joy of living or something?"
For most people it is. Actually is the fear of pain (be either physical or psychological) more than anything.
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