Thursday, September 3, 2020

Bill Mitchell — MMT blows the cover on the fictional world of mainstream economics that serves class interests


We agree with everything but don’t want anybody to know anything!

That is where the evolution of Modern Monetary Theory (MMT) is heading at the moment.

The critics started off just shouting insults – getting as many nasty epithets into an Op Ed as possible – in between sniping about ‘printing money’, Zimbabwe, chaos etc.

That showed they were realising that their dominance was under threat.

Then the criticisms were along the lines that what is old in MMT is correct and what is new is incorrect and variations on that argument.

The variation ranged from ‘we knew it all along’ claims to denial that there was anything interesting to know – which always amused me.

More recently we are hearing the story line – MMT is correct (although they don’t express it that way) but god save us if anyone finds out.

An MMT understanding allows us to appreciate that most choices that are couched in terms of ‘budgets’ and ‘financial constraints’ are, in fact, just political choices.

Given there are no intrinsic financial constraints on a currency-issuing government, we understand that mass unemployment is a political choice.

Imagine if citizens understood that.…
Falling back on the Noble Lie — deceiving the public "for their own good." But cui bono?

Paul Samuelson: The balanced budget myth

Bill Mitchell – billy blog
MMT blows the cover on the fictional world of mainstream economics that serves class interestsBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

11 comments:

Detroit Dan said...

The link to Paul Samuelson doesn't go anywhere interesting.

Footsoldier said...

Thing I want to know are these guys going to be right again ?

Or was today just a blip

https://seekingalpha.com/article/4369072-mid-august-markets-are-topping-out-be-worse-bad-seasonal-bear-phase


I thought I was going to be able to file it away as garbage then today happened.

To be right stocks need to go down a lot further for the next few days.

Tom Hickey said...

Link fixed. Thanks for the alert.

NeilW said...

"I thought I was going to be able to file it away as garbage then today happened."

It ain't garbage. It's a regularity in the US system that comes about because they have a load of true believers in charge who can't see that they need to smooth things out to avoid exploitation.

It doesn't happen in other countries.

But in the meantime, why not take the money? They certainly are

Matt Franko said...

Foot they wrote that in mid August and s&p rallied 200 points... August finished way up.... best August since 1984..,

Sept so far down about 40 points... sep is a quarterly tax month....

Matt Franko said...

In US you have the MAGA people bullish... Trump deranged are bearish ..., undecided/non partisans are the neutrals....

Trump deranged can’t get bullish as every time the market goes up, trump brags about how high he’s got it....

So the tds people simply CANT get bullish then as normal...

Is creating a permanent bearish cohort...

Trump in unprecedented fashion has integrated market psychology with presidential politics..,



Peter Pan said...

Come November they'll be bullish for Biden...

Matt Franko said...

If he wins yes... and covid will immediately be over...

Matt Franko said...

If Trump wins then it’s just gonna be more of the same environment we’ve been experiencing this year

Greg said...


Come November they'll be bullish for Biden

—————-

And Matt and The MAGAts (Punk band name?) will be preaching Armageddon. One difference will be that the MAGAts are going to walk around with guns, marauding and intimidating everyone they disagree with.

Peter Pan said...

Josie and the MAGAhats ?