The Chinese know about MMT. I guess we'll find out how deep their understanding is.
Bloomberg QuintChina’s Economists Are Getting Into Modern Monetary Theory
https://www.bloombergquint.com/global-economics/modern-monetary-theory-wins-new-fans-in-china-as-growth-tumbles
13 comments:
Looks like they've known all along if you ask me.
Meanwhile The west is currently giving the guy on the right BILLIONS in weapons while bombing the girl on the left and calling her an anti semite
https://mobile.twitter.com/SocialistMMA/status/1517502265669697536
China knows how it works. They prove it every day of the week.
Anti-Capitalist Chronicles: China's Economic Rise - Part 1
https://m.youtube.com/watch?v=lzZ2N6stTE4
Anti-Capitalist Chronicles: China's Economic Rise - Part 2
https://m.youtube.com/watch?v=3CEkvjzDtz4
China's Common Prosperity: A Possibly Revolutionary Moment?
https://m.youtube.com/watch?v=tI94IbntajI
3 excellent videos that summarises China and even more informative when you think about what has happened over the last 3 months and how it fits in with the videos.
The Huge advantage China has with state run corporations and state run banks. Which are now the biggest 4 banks in the world.
The common Prosperity plan has fascinated me for months. Can be wait to see what happens with it.
The sheer scale and numbers involved and the speed at which things happen is utterly mind blowing.
They have laid more high speed rail in the last 3 years than the US has in the last 100 years.
If they over build they simply knock it down. With state owned companies and state owned banks profit does not matter.
Created 30 million jobs during the financial crash with the snap of a finger to replace the job losses in the exporting sectors. 30 million FFS.
That's just a few examples the videos cover more mind bending numbers.
Yes, China will lead the way in destroying the planet.
The Chinese government hasn’t endorsed MMT, with some officials hinting its more appropriate for high-income economies like the U.S. Lu Lei, deputy director of China’s foreign exchange regulator SAFE, told a forum in Beijing this month that “developed countries have pushed modern monetary theory to center-stage,” but added that China should develop its own monetary theories.
With its trade surplus, China can just follow the mainstream orthodox view, which would insist that they are sitting pretty.
The thing is if the old public sector the likes of energy, utilities, education, healthcare , rail, road, public transport, rent etc, etc.
We're all free what does that actually mean ?
If state owned they don't need to charge for them. So really the bills you pay to use them are just really another tax. To control inflation.
Also, the fee/tax to use them keeps the amount of demand down so the infrastructure can cope with the workload. Imagine how many more tracks and trains you would need If travel was free. Buses and trams.
If you were to make them all free it would make your country a very cheap place to do business. Households would have so much more money to spend on goods and services. Business would have more money to invest.
So how could you make everything free and move the tax/ fee from public services into other things so that there is no inflation.
Would be perfect work to upgrade the infrastructure to deal with the increased demand for a job guarentee program and full employment. Just to keep the fixed capital investment up to date.
Or is it impossible ?
It is one of the reasons they charge high fees to park at hospitals or to eat and drink at motorway service stations etc etc...
To cope with the demand. If parking at hospitals was free and it was very cheap to eat and drink on the motorway the car parks,and facilities wouldn't be big enough.
If likes of energy, utilities, education, healthcare , rail, road, public transport, rent etc, etc. Was all free.
You might actually run out of workers when you start get to the fungible point of full employment lol.
There will be plenty of work to do that's for sure. Compete with anybody on the planet as the cost to do business would be very low indeed.
The whole infrastructure of the country would have to be redesigned to cope with the demand. Cities would never be the same.
Price regulates demand. It would be more logical to set the price in terms of energy use.
Public sector services can be run at cost.
Prices can be set to encourage/discourage behavior.
In a mixed economy (which includes all formal economies), there is a public sector, which was created and is maintained through government policy.
Ideology blinds people into believing that public policy is bad, or that public policy can solve all problems.
To accept MMT as describing monetary/fiscal policy, is to implement a macroeconomic stabilizer in the form of a job guarantee. MMT + Phillips Curve trade off = ruling class cherry picking voodoo economics.
Free as in a ration coupon. If you use up your allotment of say transit coupons, then you have to pay a fee.
It would be a very interesting book.
"What if all public services were free."
I think the 2 biggest challenges would be how to replace the tax burden of charges and put the tax on something else. How to cope with the increased demand.
As always inflation being the problem.
But not impossible if planned right over many years. Even do one public service at a time.
The trend is in the opposite direction: fewer public services, more public private partnerships.
Programmable CDBCs tied to your identity is rumored to be a way of controlling consumption habits. If TPTB are serious about environmental issues, it could be an attempt to reduce consumer culture.
Given the quality of current leadership, the future may turn out to be nasty, brutish and short.
CBDC ^
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