Yes, the government can just issue currency — as long as it doesn't lead to demand that outstrips supply. Then inflationary pressure will build up. Generally, though, the economy is not running at capacity, and there are idle resources going to waste.
Government has the fiscal capacity to put those idle resources to use. For example, with a universal job guarantee that offers work (job matching) at a living wage plus benefits to anyone willing and able to work, actual full employment (less transitional) is possible to achieve.
Investor Observer
Modern Monetary Theory: Can the Government Just Print Money?
Neal Farmer
Yes, the government can just issue currency — as long as it doesn't lead to demand that outstrips supply. Tom Hickey
ReplyDeleteExcept government has to compete with a government-privileged private credit cartel, aka "the banks", for real resources.
And when banks create credit, it's not for the general welfare but for the private welfare of themselves and the rich, typically the most so-called "credit worthy."
Yes, a monetary sovereign can, at least in principle, always out-compete the private sector but why subsidize a bidding competitor in the first place at the expense of higher price inflation?