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Unfortunately, it's because the acolytes of MMT already won. The national debt has completely exploded and there's no putting that genie back in the bottle with
by uejfiweun 5y ago
Unfortunately, it's because the acolytes of MMT already won. The national debt has completely exploded and there's no putting that genie back in the bottle without hyperinflation.
- wbsss4412 5y agoMMT is not, nor has it ever even the dominant ideology of those who are actually in control of monetary policy. I know it’s a popular boogeyman, but it’s pure fantasy.
- uejfiweun 5y agoGotcha. Well, whatever the name of the theory is that says it's OK to just rack up a ginormous national debt, that's what I am against.
- wbsss4412 5y agoThat theory is called “starve the beast” wherein tax hawks seem to believe shrinking the federal budget is simply a matter of cutting taxes and engaging in brinksmanship, despite the fact that their ultimate goal of cutting SS and Medicare has been a political non starter for decades.
- uejfiweun 5y agoYeah, I don't really get why you would pre-emptively cut taxes in anticipation of future spending cuts. If there's one thing we can bank on in history, it's that governments always get bigger. Spending cuts are just very unlikely to happen.
- wbsss4412 5y agoSeems to be good politics I suppose. The thing about MMT, is that it’s not about racking up gigantic debts per se, their thesis is that deficits and debt don’t matter in an absolute sense, but in relation to other monetary factors. Eg. once inflation picks up, then it becomes necessary to cut budget deficits.
- notch656a 5y agoThen a new goal is needed. Allow anyone to opt out of SS/Medicare for life, cutting themselves off from social aid in exchange for not providing it.
- wbsss4412 5y agoI mean, that isn’t a different goal.
- netcan 5y agoThe acolytes of MMT? Sheesh! How come anything touching on "what is money" gets goofy immediately? Most of the world's monetary systems have been run under Monetarist theories for 40-ish years. Theory is now entirely at odds with observed realities. New theories gain ground. National debts "exploded" a long time ago. Japan's exploded over a generation ago and most of western economies "exploded" 10-15 years ago. Except these explosions aren't explosions. Central banks continue to decree whatever interest rates they want, with no market pushbacks. The monetarists and goldbugs have been screaming "inflation" constantly for 25+ years. That does not mean that their theory of inflation (national debt) is true. It isn't.
- argentinian 5y ago> Most of the world's monetary systems have been run under Monetarist theories for 40-ish years. Argentina's monetary system hasn't.
- wbsss4412 5y agoIt hasn’t been run under MMT either, given that it’s an entirely new academic theory.
- netcan 5y agoBoth true. I'd even say that "theories," is probably the wrong term. More "school of thought." I would also point out that the USD/EUR/GPM/Yen/etc are "run under MMT" in the basic sense. They simply have different ideas about inflation. Broadly, MMT thinks same year spending is the main inflationary mover. Monetarism thinks cumulative national debt is what impacts inflation.
- wbsss4412 5y agoAgreed in the sense that MMT theorists assert that their theories describe what happens in practice. I disagree if the assertion is that policy makers have been consciously crafting policy under MMT this whole time.