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The Surprise Cult of Modern Monetary Theory
- AnimalMuppet 8y ago> Rather than “finding” the money to “pay” for universal healthcare, governments can electronically create money out of nothing. When inflation begins to rise, the state can employ its fiscal lever, taxing excess money out of the economy. Yeah, but see, in the US at least, it's Congress that controls the taxes. Do you trust Congress to put the brakes on at the right time and to the right degree? Have you looked at Congress lately? That's assuming that MMT actually works as advertised, which I think is quite an assumption. I think it's more likely that MMT = "Magic Money Tree" (I stole that; can't remember from where or I'd give credit where due). That is, MMT is a too-good-to-be-true offer of free money that won't work in reality.
- zunzun 8y agoMy understanding is that, if it is added at the correct rate, the U.S. economy can absorb infinite amounts of counterfeit money.