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> MMT argues that governments in control of their own currencies, like the U.S. and Japan, aren’t constrained in the ways standard economics says they are. They
by baddox 7y ago
> MMT argues that governments in control of their own currencies, like the U.S. and Japan, aren’t constrained in the ways standard economics says they are. They may risk stoking inflation or running out of resources if they spend too much -- but they can’t go broke.
I'm a bit confused. My impression is that this is overwhelmingly the dominant view in mainstream political discourse. My impression is that, at least in the United States, it's considered fairly radical to talk seriously about significant spending cuts, balancing the budget, or even having the slightest concern at all about budget deficits or national debt.
- SubiculumCode 7y agoThese are the things I've heard over and over and over in political discourse. Federal deficit clocks! omg China is owns us, We are gonna be bankrupt! All these are household budget ideas that do not fit with a fiat currency and debt denominated in your own currency.
- portroyal 7y agoEconomics? Politics? le gasp Religion?!? Society says go find an echo-chamber and don't bother anyone. ¯\_(ツ)_/¯
- basementcat 7y agoMy understanding is the most people in the USA (and their elected representatives) are totally in favor of budget cuts; they just don’t agree on exactly what to cut. Some liberals may want to reduce military spending and some conservatives may want to reduce social spending. As a compromise, both parties usually agree to increase spending on both.
- britch 7y agoI think talking about spending cuts and balancing the budget were pretty common not too long ago. It was a big part of Paul Ryan's speaker-ship.[0] Republicans (and some democrats) have used "balancing the budget" rhetoric, to justify cutting or refusing to expand wellware and social safety net programs. This has died down once they got into power because no one actually want to balance the budget (cutting military spending is not exactly a hit in republican strongholds).[1] So in a way you are right, no one is _seriously_ talking about balancing the budget, but people certainly were talking about it. [0] https://en.wikipedia.org/wiki/The_Path_to_Prosperity https://en.wikipedia.org/wiki/The_Path_to_Prosperity [1] https://www.vox.com/policy-and-politics/2018/12/10/17929460/paul-ryan-speaker-retiring-debt-deficits-trump https://www.vox.com/policy-and-politics/2018/12/10/17929460/...