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National deficit spending is the appropriate and correct tool to finance national emergencies. This is not "Modern Monetary Theory," it is basic government fina
by snowwrestler 6y ago
National deficit spending is the appropriate and correct tool to finance national emergencies. This is not "Modern Monetary Theory," it is basic government finance. We financed every war in the 20th century this way, as well as the responses to major financial shocks.
- salmon30salmon 6y agoThe parent said "print the money" which very much is MMT. Bonds/other debts are a different discussion and we very much are deficit spending right now to combat this.
- snowwrestler 6y agoIf you understand how deficit spending works to counter emergencies, then why did you even ask your question #2 above? It seems like you are moving goalposts.
- salmon30salmon 6y agoBecause UBI is fundamentally different than most deficit spending. It actively injects cash into circulation as opposed to kick-starting economic activity which leads to increased spending/circulation. UBI has not ever been tested at a large scale, and we have no reason to believe it will work. The last thing we need in this fragile economy is inflation. And UBI without increasing revenue will cause inflation, no way around that.