Saturday, September 29, 2018

MMT gone viral!

MMT gone viral! The cat is out of the bag. The last mile is closing fast now.

Modern Monetary Theory: why government spending isn't like household checkbooks
Cory Doctorow

Economists Who Want You to Rethink the Deficit Gather in Downtown NYC 
Jeanna Smialek


AXEC / E.K-H said...

Dean Baker: progressive agenda pusher for the Oligarchy
Comment on Dean Baker on ‘Getting serious about debt and deficits: the deficit hawks did enormous harm to our kids’

Dean Baker argues: “With the possibility that the Democrats will retake Congress and press demands for increased spending in areas like health care, education, and child care, the deficit hawks (DH) are getting prepared to awaken from their dormant state. We can expect major news outlets to be filled with stories on how the United States is on its way to becoming the next Greece or Zimbabwe. For this reason, it is worth taking a few moments to reorient ourselves on the topic.” and “Just to remind everyone, the classic story of deficits being bad is that they crowd out investment and net exports, which makes us poorer in the future than we would otherwise be.”

Just to remind everyone, the classic debate about deficit-spending/money-creation entirely misses the point. The lethal argument against MMTers and other promoters of deficit-spending/money-creation is that the permanent growth of public debt is a program for the permanent self-enrichment of the Oligarchy, because of the macroeconomic Profit Law Public Deficit = Private Profit.#1

Fact is:
• MMT/Post-Keynesianism is a macroeconomic theory that is refuted on all counts. It is scientifically worthless.#2
• Like all other false friends-of-the-people Dean Baker does not mention once the profit effect of deficit-spending/money-creation.#3, #4
• All the social benefits MMTers promise are paid for in real terms by WeThePeople themselves via stealth taxation.#5
• Public debt is deferred taxation of WeThePeople which is simply pushed beyond the time horizon. In the meantime, income is redistributed from WeThePeople to WeThe Oligarchy via taxation/interest payments.
• Economically, the point to worry is that the US economy will drop dead as soon as the growth of public and private debt slows down and eventually reverses.

MMT claims to push the agenda of WeThePeople but in fact, pushes the agenda of WeTheOligarchy. MMT is a social fraud and so-called Progressives including Dean Baker are part of it.#7

Egmont Kakarot-Handtke

#1 Why the MMT benefactors of humanity never talk about profit

#2 For the full-spectrum refutation see cross-references MMT

#3 Stephanie and Noah ― economics at the intellectual zero lower bound

#4 Keynes, Lerner, MMT, Trump and exploding profit

#5 MMT, money printing, stealth taxation, and redistribution

#7 For details of the big picture see cross-references Debt/Deficit

Konrad said...

Why government spending isn't like household checkbooks

It’s encouraging to see MMT continue to spread.

Unfortunately MMT has also become a weapon for TDS zombies (Trump Derangement Syndrome). When Trump fired Gary Cohn as an economic advisor (2 April 2018) Cohn sought revenge by claiming that Trump told him the U.S. government could simply print money to pay off the national debt. TDS zombies latched on to this.

On 10 May 2016, CNN attacked Trump for correctly saying that, “The U.S. government will never default because you print the money.” (Bernanke and Greenspan said the same thing.)

Once again TDS zombies cut their own throats. If we say that the U.S. government can easily create the money for Universal Medicare, the TDS zombies respond with, “You’re a bigoted Trump supporter! Where’s your MAGA hat?”

I saw this line in the article: ”To a layperson, MMT can seem dizzyingly complex…”

When people spend their whole lives as slaves, they regard freedom as scary. Likewise, when people’s heads are filled with lies, people regard the simplest truths as “dizzyingly complex.”

Konrad said...

A young child asks a "dizzyingly complex" question...

CHILD: Daddy, I noticed that when they want to add points to a scoreboard, they just change the numbers.

FATHER: That's right.

CHILD: So when the U.S. government wants to add money to the economy, why can't the government just change the numbers in bank accounts?

FATHER: You'll understand when you're older.