Maybe MMT has come just in the nick of time?
In The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy, Stephanie Kelton dispels six key myths that have shaped the conventional understanding of deficits as inherently bad, instead arguing that deficits can strengthen economies and lead to faster growth. This book is a triumph, writes Professor Hans G. Despain, shifting normative grounds of government spending away from the false and unproductive idea that deficits are irresponsible and ruinous towards the productive political activity of deciding which spending programmes should be prioritised.
Stephanie Kelton, in her new book The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy, demonstrates that concerns about public debt overhang are ill-founded. Kelton argues that government spending properly targeted and government debt need not be problematic. Indeed, she argues that public deficits can be very healthy for an economy. Kelton contends bigger deficits can strengthen an economy and lead to faster growth.
LSE US Centre
“ instead arguing that deficits can strengthen economies and lead to faster growth”
ReplyDeleteLOL...
From mikes latest report:
“ The deficit as of June 25 was $2.28T. This is the largest nominal deficit in history and 10.6% of GDP. If you use Q2 GDP forecasts the deficit may be as much as 19% of GDP.”
And the economy is in the shitter....