Modern monetary theory, the idea that the government can print all of the money it needs, is the pet idea of the left. MMT theorists explain that debt is simply money that the government put into the economy and didn’t tax back. That’s how you get morons who can’t explain how the economy works running the country, for example the Biden administration’s chief financial advisor:
This is who is running the country- leftists with as much understanding of how economics works as a child who thinks money comes from the ATM at the bank. I can explain MMT in their terms better than they can.
The adherents of MMT believe that the government can print all of the money it desires, without consequence. Bonds and taxes are the means with which the government controls inflation and levels the playing field. If the economy gets too hot and inflation results, all the government has to do is sell more bonds. This reduces the money supply and cools the economy. If this causes too many people to get rich, raise taxes on the rich, and that levels things back out.
Stupidity. It hurts me to even type that drivel. The simple fact is this- the left has little to no understanding of how economics, or even money, works. That’s why so few of them run businesses, why so many of them are struggling financially, and why our nation is in the financial crapper.
17 Comments
TRX · August 7, 2024 at 6:53 am
There was a prolific, but mostly-forgotten science fiction writer named Mack Reynolds, who wrote from the 1950s into the 1970s. He was pretty much a hack, which is one reason he’s mostly-forgotten nowadays, and he was a socialist, which was pretty common. But he was often entertaining, even if he was only a fair writer.
A lot of his stories were about different monetary and economic systems. There was a throwaway line in one of them – I really need to go back and find out where, so I can quote it accurately – that went something like:
“If economists really understand how the economy works, why aren’t they all millionaires?”
This being in the 1960s, when a million dollars was serious money.
He had a very good point. Almost all “economists” are actually university professors, living off public money. Many of them have been in academia their whole life. They have no idea how money or employment work in the real world.
So, yeah, if the MMT guys are correct, they’d all be billionaires, right?
foot in the forest · August 7, 2024 at 7:11 am
That lack of understanding about simple economics is brought to you by government schools. Educating sheep for a century.
southernborne · August 7, 2024 at 7:44 am
Good post, but actually quite a few of these morons are running companies now. Boeing, intel,Anheuser-busch, could go on.
Steve · August 7, 2024 at 9:14 am
MMT is more nuanced than that, though I agree that’s the way the politicos sell it.
Start with the premise that money is like any other good in that its price is determined by supply and demand. If the price of the dollar is rising (goods prices are falling) government needs to spend more money into existence. Technically on anything, even Biden artwork, but the theoreticians suggest looking at sectors and subsectors that need special help.
However, if we are experiencing inflation, which means the price of the dollar is falling, the answer is higher taxes, targeted on the sectors and subsectors with the most inflation. If prices in health care are rising faster, tax medical procedures and services and pharmaceuticals until people stop “demanding” so much of them. If its in education, tax the colleges. If it’s in groceries, tax the grocers. If it’s broadly in consumer goods, tax the consumers.
The only time the answer is “tax the rich” is if the price increases are largely restricted to things like yachts and jets and mansions. Politicians conveniently forget that most of the time, the correct MMT answer is not “tax the rich.”
Divemedic · August 7, 2024 at 11:40 am
Prices increasing on some products and services is not inflation, but the market at work.
If prices are increasing on everything (including precious metals) then that is a sign that the currency is worth less, or what is called inflation.
Steve · August 8, 2024 at 9:12 pm
Sure, but introducing money into the economy in different ways affects different sectors differently. Pumping money into electric vehicles has a different effect than what COVID bux did. Cash for Clunkers had no choice but to make cars more expensive for middle class and below, because it took scads of used cars off the market, and, with fewer cars, prices for new could and did go through the roof. Cash into school loans made obscene price hikes in education. Medicare/Medicaid. Obamacrap.
Divemedic · August 8, 2024 at 10:40 pm
That isn’t inflation. For example, if the price of gasoline is rising because of a war in the middle east, that isn’t inflation.
Differ · August 7, 2024 at 6:53 pm
Your premise is fundamentally flawed. Money is NOT a good it is a medium of exchange for goods……
Everything else based on the premise fails.
Steve · August 8, 2024 at 9:14 pm
Sorry, you are mistaken. Like any other good, you flood the market, the price goes down. You starve the market, the price goes up.
I understand that is not the way most people think of money, but that is also why the wizards of smart can pull so many shenanigans, and most people have no idea what just happened.
Anonymous · August 7, 2024 at 9:56 am
Everyone old enough to know Santa is their parents knows government can’t create wealth from thin air. Nobody stranded on a tropical island proposes making tree leaves into fiat currency to improve the economy. 99% of humans are commie parasites because that’s what their great ape social organization instincts tell them to be. Orwell’s Doublethink is another name for method acting, it helps people lie.
jimmyPx · August 7, 2024 at 9:58 am
In that Twitter interview, she asks the moron a good question “If the US government can just print dollars than WHY do we have to BORROW it”?
He gives a bumbling answer but he knows EXACTLY why.
See the Federal Reserve Act and we “borrow” the money from THEM.
The Federal Reserve is as federal as Federal Express and is a private corporation but WHO owns this corporation ?
Guys with names like Rothchild and who wear small hats.
To fix this, you could pass a law reversing the Federal Reserve Act and tell them to pound sand.
JFK was going to do this and started issuing money printed by the US Treasury and NOT Federal Reserve notes. “Coincidentally” of course (just like Gaddafi who didn’t live long after going against the central bankers) he didn’t live long after that and those treasury printed bills quietly were removed and it was never spoken of again.
As an aside, if you want to see who REALLY has power in this World, look at the countries that have opposed the central bankers in the last 30 years. It is purely coincidence I’m sure that they were all the countries the US and European puppets opposed and attacked.
NP · August 7, 2024 at 10:08 pm
Revilo Oliver showed that Kennedy was not the friend of real money that he is sometimes falsely portrayed to be. See part II of this article: https://archive.org/details/KillingKennedy_995
jimmyPx · August 7, 2024 at 10:05 am
Sorry for the 2nd post but honestly this should be the #1 issue discuss in the election but it will NEVER be discussed.
The money printing is the main CAUSE of our current inflation that is screwing all of us right now.
More money printing = dollars worth less = inflation rises.
Look at the graph on this website and you will notice the M2 (money supply) equates almost EXACTLY to the rise in inflation.
https://www.longtermtrends.net/m2-money-supply-vs-inflation/
But as Faux News and CNN as well as the politicians, it’s caused by greedy companies and supply chain issues….BS.
Michael · August 7, 2024 at 10:18 am
Sorry but you mistake inept with thievery.
MMT allows the use of inflation and soon enough Hyperinflation to make Gov.com debt paid for promises worthless. Inflation the TAX no average Joe can avoid.
SiG · August 7, 2024 at 10:47 am
TRX – that’s a good line!
…
My take on MMT is harder to make sound good: it’s just economists whoring out to the government. Throughout history, there have always been people willing to tell the King anything he wanted to hear so they could get influence and power. Dr. Stephanie Kelton and her MMT is just the latest way. As others have said, if they can just print any amount they want any time they want, why collect taxes? To prove they have power over you?
Pete · August 7, 2024 at 12:17 pm
They know they are wrecking everything. All they care about is juggling the balls in the air until they die. After they die, everything can fall apart for all they care.
Joel · August 8, 2024 at 12:14 am
That guy is TOTALLY unqualified! If that’s AI-footage, that’s SCARY! If that’s REAL footage, it”s DAMN SCARY!
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