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I posted this link because, as an noneconomist, I find modern monetary theory intriguing but I don't know how well it would work in practice. If it is indeed vi
by tkgally 6y ago
I posted this link because, as an noneconomist, I find modern monetary theory intriguing but I don't know how well it would work in practice. If it is indeed viable, why have the issues of deficits and government debt—which the theory seems to claim don't matter—been allowed to dominate the political conversation?
- BubRoss 6y agoWhy do you say "how well it would work in practice" ? It has been in practice for 50 years. Do deficits dominate political conversations? And what does that have to do with mattering?
- ctchocula 6y agoThe essay "Political Aspects of of Full Employment" [1] outlines the vested interests of industry leaders in playing up the danger of deficits and increased public investment. As a noneconomist, I too would be interested in hearing some reasons why the idea was abandoned until MMT brought it into the mainstream once again. 1) dislike of government interference in the problem of employment as such 2) dislike of the direction of government spending (public investment and subsidizing consumption) 3) dislike of the social and political changes resulting from the maintenance of full employment. [1] https://mronline.org/2010/05/22/political-aspects-of-full-employment/ https://mronline.org/2010/05/22/political-aspects-of-full-em...
- gizmo686 6y agoSee 'arguing with zombies'. These ideas have been allowed to dominate political conversation because they are politically effective. Note that the Republicans, who are politically the anti deficit party, only seem to care when arguing to end programs they don't like.