Friday, May 3, 2019

John T. Harvey — The Senate Resolution To Condemn MMT: Here Are Some Better Candidates For Condemnation

I can hardly believe that I am typing this. A resolution has been forwarded in the Senate to condemn an economic theory:

“Recognizing the duty of the Senate to condemn Modern Monetary Theory and recognizing that the implementation of Modern Monetary Theory would lead to higher deficits and higher inflation.”
I guess on the one hand that we should be happy that anyone is even aware of Post Keynesian economic theory. Scholars in this area have toiled largely in vain for going on a century (marking Keynes’ General Theory in 1936 as the starting point). So maybe there’s no such thing as bad publicity???
But, to suggest that MMT is anything radical or dangerous–especially to the point of requiring an official Senate condemnation–is just plain bizarre.….
Forbes — Pragmatic Economics
The Senate Resolution To Condemn MMT: Here Are Some Better Candidates For Condemnation

If Unemployment Is So Low Then Why Don’t I Feel Better?John T. Harvey | Professor of Economics, Texas Christian University


Magpie said...

As an Aussie Marxist and sort of MMT sympathiser, I can say this: youse Yanks have lost the plot. Fair dinkum.

That shit is absurd in so many levels. Bloody oath. But there's one level of absurd I can't gloss over and an admittedly mean-spirited comment I can't repress.

I found this in the comment thread of one of Prof. Mitchell's posts:

Christopher Herbert
Wednesday, May 1, 2019 at 21:30

Here in the US, even mentioning Marx puts you into the bowl with mothers who won’t vaccinate their kids. You are dead on arrival, in other words. And there is no chance of resurrection. It has its benefits, of course, because I don’t have to even try to explain Marx. Explaining the operational benefits of MMT is advantage enough. MMT explains how to pay the bills and how to save some money, because it is a more elegant and efficient way to finance a monetary sovereign government. And a more elegant and efficient way to produce full employment and stable prices. I’m going to stick to those narratives. For me, Marx is not part of the conversation.

Take that, Chris. Poetic justice. You've gotta love the timely irony. I think it is us Commies who should keep a safe distance.

Bob said...

Senate Resolution on Blasphemy. Desperate times call for desperate measures.

Bob Roddis said...

I would vigorously support Congress passing a law to be signed by the President which makes clear that any government or Fed official who might dare conduct any type of MMT monetary policy is guilty of a felony and shall suffer the death penalty. It could be modeled on Sec. 19 of the Coinage Age of 1792:

SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said Mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to connivance of any of the officers or persons who shall be employed at the said Mint, for the purpose of profit or gain, officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined at the said Mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death.