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Agreed. I think that is the main contribution: Resource, technological, social and political limitations can lead to inflation. I have issues with some MMT pro
by SubiculumCode 8y ago
Agreed. I think that is the main contribution: Resource, technological, social and political limitations can lead to inflation.
I have issues with some MMT proposals however. For example, the full employment federal job guarantee proposal goes in the wrong direction I think, because I do not think, as a amateur, that understanding the limits of money creation, role of taxes, etc, implies that centrally planned solutions are the best option (ie. Federal government guarantees you a job), when Top-to-bottom-up (i.e. unrestricted basic income) alternatives might leverage market forces rather than central planning in how that money is spent to better lives or to help fund new businesses.
- jabl 8y agoThe common MMT objection against UBI is that it's inflationary, that is, the state spends money (UBI) without getting anything (production) in return. The "efficiency" of job guarantee (JG) jobs is perhaps not the best, but OTOH it's not zero either. The general idea in the JG is that it provides minimum wage jobs, functioning as a social safety net (or, JG effectively sets a minimum wage). When the economy does well, workers migrate to non-JG jobs, and vice versa in a downturn, keeping full employment at all times. To some extent I think there's also a philosophical point here. Do we regard jobs as inherently useful, e.g. providing a social setting for peoples lives, or are most jobs "bullshit jobs" that serve no useful function whatsoever? How you answer that probably makes a difference in how you view JG vs. UBI as well.
- SubiculumCode 8y agoMy view is that UBI is not inherently wasteful as it allows people who'd otherwise be productive by giving them room to maneuver.