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MMT says that if you have unused capacity in the society, the government might as well use it (by printing money). As long as it doesn't compete for resources i
by thomasahle 5y ago
MMT says that if you have unused capacity in the society, the government might as well use it (by printing money). As long as it doesn't compete for resources it won't create I inflation but simply grow the economy.
It's a pretty distinct issue from redistribution.
- hackeraccount 5y agoDistinct? It seems to just be a rephrasing. How will we create unused capacity? We'll take money from some people so it can't be spent on whatever capacity they want and so spend it on the capacity we want. On that level MMT isn't particularly troubling to me. The thing I don't like about it is when the proponents start implicitly talking about having politicians directly control the money supply. The status quo has the Fed - which ultimately is a creature of congress but there's at least a bit of inertia for congress to enact its will and the Fed has room to do things outside of that will.