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The US govt is not like a household. You can print your own money, all your debt is deniminated in USD. Inflation is not an issue in reality. Google 'modern mon
by Maro 8y ago
The US govt is not like a household. You can print your own money, all your debt is deniminated in USD. Inflation is not an issue in reality. Google 'modern monetary theory'.
- dralley 8y agoMMT is considered to be garbage by the majority of mainstream economists.
- Maro 8y agoMainstream economic theory is considered garbage by the majority of mainstream economists :) Joking aside, what MMT says is pretty easy to understand from reading ~100 pages and watching some YT lectures/debates, where mainstream economists also voice their opinion. A reasonably intelligent person can make up their own mind, irrespective of what others think. Finally, if you watch debates on YT, it's not true that mainstream economists say it's garbage. They usually say "MMT is essentially accounting truisms". Here's Paul Ryan asking Alan Greenspan about this: https://www.youtube.com/watch?v=DNCZHAQnfGU https://www.youtube.com/watch?v=DNCZHAQnfGU
- spinchange 8y agoAnd yet, isn't it sort of an inadvertent/defacto practice, looking at monetary policy retrospectively? (Not a qualitative/value judgement question)
- deleted 8y ago[deleted]
- jackfraser 8y agoYou do realize that physical resources, which money is to some extent a representation of, are themselves finite, right? Printing money does not food create. Look at Zimbabwe for what happens when MMT is put into practice.
- Maro 8y agoWhen raw materials are combined, new value is created. Disregarding solar input, raw materials are finite, so it was the same total 1000 years ago as today. Yet today we have infinitely more goods (and services) than 1000 years ago, and we all agree that it's okay to have more money than 1000 years ago to represent the additional value.