Here he goes again. "Zimbabwe."
Tim Worstall knows better. MMT's bottom line is availability of real resources to meet effective demand. Zimbabwe's problem is exceeding its real resource constraint fiscally. The predicable result based on MMT analysis is inflation.
This is trivial. Either Tim Worstall is ignorant of MMT, or he is being disingenuous.
Tim Worstall
Except the economy runs on bank deposits, not fiat, and the banks may also create deposits ("Bank loans create bank deposits") - especially when privileged by government*.
ReplyDeleteUntil MMT advocates seriously address this point then how are they not advocating welfare for the banks and government-supplemented wage slavery for the victims of the banks?
It's quite sad that MMT could be used to liberate and provide restitution but is instead another means to perpetuate the status quo. I guess this generation is just not worthy to reform the system.
*e.g. government-provided deposit insurance instead of inherently risk-free accounts for all citizens at the Central Bank itself.
Worstall definitely is not ignorant of MMT. He was thoroughly destroyed when he responded in the comments. He understands MMT, admits it's correct, but doesn't like it so he replies "Zimbabwe!"
ReplyDelete