Monday, February 27, 2012

Warren Mosler in John Carney on US becoming Greece

Read it at The Center of the Universe
Someone is still worried about the US becoming the next Greece
by Warren Mosler


mike norman said...

I know for a fact that the networks are not friendly to MMT. When I started touting MMT at Fox I was marginalized. Eventually that factored in to my decision to quit. Carney is surely under the same pressures at CNBC. He has to toe the line regarding the overall editorial content. He runs an entire unit over there, so he doesn't have a lot of leeway. A couple of his early posts were 100% dead on MMT, but then his tone changed quite a bit. Could have been as a result of feedback from above. Just my guess.

Dan Kervick said...

Nevertheless, there is now a somewhat greater interest in MMT in the mainstream media. I wonder why? I have a theory.

Political leaders are anticipating a rising tide of support for expanded public spending, in part because of the Occupy movement and similar youth movements that are gathering steam around the developed world. As politicians come under increased pressure to deliver the public goods, they will be faced with a decision: Do they stick with their mainstream economic theories that tell them budgets must be balanced and increased spending requires increased taxes? Or will they go with a heterodox approach that tells them they can run deficits and limit the tax increases?

Small wonder if the political establishment and the plutocracy it serves suddenly "discovers" MMT.