I hate to break it to the MMTers, but fuddy-duddy economists already knew this. Indeed, among free-market economists it is a standard pedagogical device to tell the audience that the government has three ways of financing its spending, namely (1) taxes, (2) borrowing, or (3) inflation. So this notion that only the MMTers perceive the possibility of the printing press as a means of “paying for” government programs is silly.
For proof, consider the following excerpt from Austrian economist Murray Rothbard’s economics treatise, Man, Economy, and State, published in 1962:
You get the idea. Claims that MMT economists are cranks by citing a crank.
MMT and the Green New Deal
Institute for Energy Research
1. Tom "Black Knight" Hickey: "Tis but a scratch."
ReplyDelete2. How would you know whether or not Rothbard is a crank since you haven't the slightest understanding of Austrian analysis or its obliteration of the Keynesian Hoax?
3. The point Bob Murphy makes and you are citing is that EVERYONE has always known that the government could, if it wanted, create unlimited amounts of fiat money and use it to buy stuff. Do you claim this is not true???? Further, that ability does not eliminate the existence of scarcity in the universe or eliminate the laws of economics.
This is the link to the original article:
https://www.instituteforenergyresearch.org/regulation/mmt-and-the-green-new-deal/
Murphy also interviewed Warren Mosler:
https://www.bobmurphyshow.com/ep-18-warren-mosler-defends-the-essential-insights/