tag:blogger.com,1999:blog-2761684730989137546.post5726788517668794483..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: What is Modern Monetary Theory? MMT Explainedmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-48392713576442380992019-03-13T06:30:45.531-04:002019-03-13T06:30:45.531-04:00My above comment got misread. Here' my reply.
...My above comment got misread. Here' my reply.<br /><br />BBBar. Thanks for your reply, and I entirely agree with you. You have misread me. That's not your fault, it's easy to be not as clear as you think you are being ( meaning myself) when writing something.<br /><br />There's is loads of spare capacity in our society, but not enough purchasing power due to the way capitalism reduces wages so much, and this leads to underemployment.<br /><br />Now, the MMTers do say that the amount of money that governments can usefully create is limited to the amount of human and physical resources available, but our present day society has a long way to go yet before it maxes out. So, plenty of room for governments to create new money and spend it.<br />Kaiveyhttps://www.blogger.com/profile/04195639305785321786noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-17715600171284485302019-03-12T13:53:39.071-04:002019-03-12T13:53:39.071-04:00Richard Wolff explains why capitalist societies te...Richard Wolff explains why capitalist societies tend to always be underperforming: That the fierce competition brings about low wages and so demand is suppressed and this leads to under-employment. <br /><br />The Magic of MMT.<br /><br />I previously said that just because the government can issue its own currency it doesn't mean society can get free public services because people will always have to work to provide those services. But I've had some new insight - most of society will get a free service after all. <br /><br />When the government deficit spends to create a public service, new money is injected into society when the public staff get paid and buy goods and services. Society then gears up to produce more products, and now the government money is backed by new goods and services. <br /><br />MMT says the government is restrained by how much it can spend as human and physical resources are finite, which means spending more money won't produce more goods and services, only inflation.<br /><br />How does society produce more goods and services when the government spends on public services? Well, for one thing, the staff already employed in those companies that supply goods and services may want to work longer hours, but also, these companies will employ more people as well.<br /><br />In this way, the under-employed and unemployed will find more work and will be supply the goods and services to the public staff. <br /><br />These people were doing nothing before, and may have been even on benefits, but now they are working contributing to society. So, in effect, it is they who do the extra work to provide the goods and services that the public healthcare workers have worked for, and the rest of society gets a free health service.<br /><br />These people who were underemployed are now also buying more products and services. Society becomes richer. <br /><br />A little bit of socialism and a little bit of capitalism are great bedfellows.<br /><br />Kaiveyhttps://www.blogger.com/profile/04195639305785321786noreply@blogger.com