4 ms·

In MMT when you print too much money, you contract the money supply through taxation. What do you think the Biden admin has been working hard on?

postingawayonhn 5y ago
That's much harder to sell politically.
brendoelfrendo 5y ago
Hm, I’m not versed on MMT to know much about this particular mechanism, but it seems like it would be foolish to make the pressure relief valve for your monetary policy something that is subject to approval by Congress.
roenxi 5y ago
A strategy of first triggering high inflation then raising taxes may literally cause riots. It would have been a better strategy if, at some point in the last decade, the powers that be had stopped printing money and let some bankers go broke. Now that we're discovering (again) that printing money doesn't help there is a painfully transparent history of handouts to the wealthy, making it hard to justify politically why everyone else can't get in on the lurk.
- anonuser123456 5y ago
  Depends on who you tax. Tax the rich and tax them on their assets and you can float your treasury for a while… long enough to make an equitably poor society.
- worrycue 5y ago
  > It would have been a better strategy if, at some point in the last decade, the powers that be had stopped printing money and let some bankers go broke. If you are talking about 2008's TARP, the US gov actually turned a profit from that as the bailout was mostly in the form of loans (with interest) and investment (the US gov now own shares in your company). https://projects.propublica.org/bailout/ https://projects.propublica.org/bailout/
  - roenxi 5y ago
    No, I'm referring to the money supply increasing much more quickly than wages are. Someone is creating money and handing it out to asset owners. It is difficult to argue against creating money and handing it out to everyone with that sort of history. Asset owners aren't special people.
  - dannyw 5y ago
    I can make a profit from investing in organised crime, but that doesn't mean its a good thing.

postingawayonhn 5y ago

That's much harder to sell politically.

brendoelfrendo 5y ago

Hm, I’m not versed on MMT to know much about this particular mechanism, but it seems like it would be foolish to make the pressure relief valve for your monetary policy something that is subject to approval by Congress.

roenxi 5y ago

A strategy of first triggering high inflation then raising taxes may literally cause riots. It would have been a better strategy if, at some point in the last decade, the powers that be had stopped printing money and let some bankers go broke. Now that we're discovering (again) that printing money doesn't help there is a painfully transparent history of handouts to the wealthy, making it hard to justify politically why everyone else can't get in on the lurk.

anonuser123456 5y ago
Depends on who you tax. Tax the rich and tax them on their assets and you can float your treasury for a while… long enough to make an equitably poor society.
worrycue 5y ago
> It would have been a better strategy if, at some point in the last decade, the powers that be had stopped printing money and let some bankers go broke. If you are talking about 2008's TARP, the US gov actually turned a profit from that as the bailout was mostly in the form of loans (with interest) and investment (the US gov now own shares in your company). https://projects.propublica.org/bailout/ https://projects.propublica.org/bailout/
- roenxi 5y ago
  No, I'm referring to the money supply increasing much more quickly than wages are. Someone is creating money and handing it out to asset owners. It is difficult to argue against creating money and handing it out to everyone with that sort of history. Asset owners aren't special people.
- dannyw 5y ago
  I can make a profit from investing in organised crime, but that doesn't mean its a good thing.