Wednesday, January 22, 2020

Modern Monetary Theory: meet the economists fighting the economy

Morning Star editor Ben Chacko speaks to BILL MITCHELL about the new hypothesis disproving the core assumptions of neoliberalism

A good interview of Bill Mitchell.

In his 1980s book on walking Britain’s coast The Kingdom by the Sea, Paul Theroux notes the Thatcher government’s determination to close branch railway lines because they aren’t profitable — before observing “though neither are motorways.”

The fact that you pay for things because they are useful, rather than profitable, is the whole rationale for public services from the fire brigade to the police force, but disappears as soon as services are marketised — hence the government’s drive to remove guards from trains despite the social benefits of ensuring disabled access to transport or protecting those travelling alone from harassment or assault.

The Morning Star

Modern Monetary Theory: meet the economists fighting the economy


peterc said...

Thanks for the link, Kaivey. I didn't notice this interview at the time. It was very interesting to me because it touches on the subject of the compatibility of Marx and MMT.


Kaivey said...

Yes, it was very Marx oriented, probably because it was the Morning Star.

Ralph Musgrave said...

Can't see what MMT has to do with the pros and cons of Neoliberalism. Neoliberalism is roughly speaking the idea that free markets and the profit motive should reign supreme. That idea is perfectly compatible with MMT.

Indeed, I agree with what I think Peterc suggests above, i.e. that MMT is compatible with Marxism.