4 ms·
Because she's one of the biggest proponents of Modern Monetary Theory and most economists view it as snake-oil. MMT claims to offers a fix/cure all our economi
by derriz 6y ago
Because she's one of the biggest proponents of Modern Monetary Theory and most economists view it as snake-oil. MMT claims to offers a fix/cure all our economic problems - everyone can have limitless money to spend as long as "sovereign" governments are the ones handing out the free money. And like snake-oil theories it collapses under the mildest of empirical tests.
I could go on, I guess (random google) an article like this sums it up for me: https://www.singlelunch.com/2018/10/01/bad-economics-shame-on-you-planet-money-mmt-episode/ https://www.singlelunch.com/2018/10/01/bad-economics-shame-o...
- makomk 6y agoMore specifically, it draws a bogus conclusion from a true premise using an assumption that wouldn't be true anymore if their policies were enacted. The government can indeed print money and government debt is private savings - what it can't do is print resources. The USPS uses a whole bunch of sorting offices and equipment and vans and people's time which cannot just be magicked out of nowhere by the government. They all consume scarce resources that can't be used for anything else. The same is true of the USPS staff's healthcare and retirement - again, a whole bunch of resources. We're used to the fact that money represents a claim on real things at a rate that only slowly declines due to inflation because government fiscal policy is carefully managed to ensure that by not printing too much or too little money.
- anoncake 6y ago> Note that I’m not engaging the ideas of MMT on their own merit! They could be correct for all I know. For all I know, there could be articles that do debunk MMT but this one doesn't.