A prominent advocate of bigger deficits and unconventional economics will be Sen. Bernie Sanders’ chief economist when he becomes the ranking member of the Senate Budget Committee in January.
Stephanie Kelton, a self-described “deficit owl” and a leading proponent of the alternative economics theory known as modern monetary theory, announced that she would be the chief economist for the minority on the Budget Committee Friday.
“We’re very excited to have her on our team,” Sanders aide Warren Gunnels told the Washington Examiner, noting that Kelton has “very strong academic credentials.”
Kelton is currently the chairwoman of the economics department at the University of Missouri-Kansas City. In addition to her academic career, she has a strong presence on social media, especially on Twitter.
Since the financial crisis, Kelton has developed a following as a defender of larger deficits to counteract the recession, as well as one of the leading exponents of modern monetary theory, popularly referred to as MMT.….Bernie's Christmas present to the US and world. MMT is now on the political map with an official "insider."
Washington Examiner
Sanders names 'deficit owl' his chief economist
Joseph Lawler
12 comments:
Wowowowowow!!!!! This is great news!!!
Phanphuckingtastic.
Hooray, finally, the orthodox strangle hold is breaking. Best economic news in a long time!
Dr Kelton will represent policy options that didn't even have a place in political dialogue. When members of congress realize that orthodoxy have been lying all these years and it dawns on them how much power they have to influence economic events in the country and the world, they will make better laws and policy.
Ryan, I'm not sure giving politicians even more power is going to end real well.
However, in the short run at least, I do think this is great news. There is so much that could be done (e.g. infrastructure) if the "affordability" excuse is taken off the table.
Could end up with lower taxes, or more services without higher taxes.
Lots of options.
that is just awesome!
"Ryan, I'm not sure giving politicians even more power is going to end real well"
You either give politicians the power, or you give bankers the power.
Only one of those has even a nominal requirement to act in your interests.
Pick your poison.
Neil,
Spot on sir.
Private money is controlled by bankers and public money is controlled by politicians. We do have SOME control over politicians we have none over bankers.
Not completely, Greg. The politicians do have considerable control over bankers if they deign to exercise it on the people's behalf. This is what Elizabeth Warren is all about, and she is getting a significant popular following, enough to put the banking and financial sector in fear of her.
Geoff - How is MMT about "giving politicians even more power"?
It isn't. It is about people & politicians understanding the power that politicians already have been given and often exercise unjustly. Economic nonsense is so omnipresent and intimidating even to sane, well-intentioned politicians that Kelton's appointment is wonderful news.
A money-using state must be a welfare state. The only question is whether it is a social, general welfare state or one devoted to the welfare of an aristocracy-in-their-own-minds.
Tom,
I hear ya and you are of course correct. The politicians can exercise control over bankers but since the monetarist revolution it is monetary (banking) policy that rules and the cadre of economists that have their back is large and not really shrinking.
The bankers control the politicians for the most part but someone like Warren is capable of taking the case to the American people that this can and MUST change. Especially with Stephanie at her side.
The average American thinks in monetarist (QTM) terms and has been mostly convinced by a lot of supply side arguments but that too can change under right conditions.
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