4 ms·

Here is a broad overview of some current Modern Monetary Theory thinking. It's a good read, dispels a lot of fearmongering while also exposing where the real pr

Here is a broad overview of some current Modern Monetary Theory thinking. It's a good read, dispels a lot of fearmongering while also exposing where the real problems lie. https://fictitiouscapital.substack.com/p/money-myths-and-debt https://fictitiouscapital.substack.com/p/money-myths-and-deb... https://fictitiouscapital.substack.com/p/5 https://fictitiouscapital.substack.com/p/5 https://fictitiouscapital.substack.com/p/8-the-global-reserve-currency-uspetroeuro https://fictitiouscapital.substack.com/p/8-the-global-reserv...

onlyrealcuzzo 3y ago
MMT is simply a way to get rid of progressive income tax and wealth taxes (property). Instead, everyone pays equally through inflation, and retirees get screwed as their savings get inflated to dust and they have no income to make it up. Maybe that's what you want. But if you think you can just magically fund the government on unicorns because the market is dumb, I have some 1000 year T-bills at -10% yield to sell you.
- creatonez 3y ago
  Haven't yet found an MMTer who is anti taxation and pro inflation.
- dragonwriter 3y ago
  > MMT is simply a way to get rid of progressive income tax and wealth taxes (property). No, its not. MMT proponents tend to support progressive income tax and wealth taxes more than currently exists. The MMT observation that the only real constraint on fiscal policy is the monetary impacts, not fiscal balance, also means that fiscal policy tools are appropriate responses to the traditional triggers for monetary action. Need to suck money out of the economy to kill inflation: instead of raising interest rates, add supplemental high-end income taxes (without added spending.) Need to pump money into the economy because of sluggish activity? Adopt immediate low-end benefits (without additional taxes). > But if you think you can just magically fund the government on unicorns because the market is dumb That’s not what MMT believes. MMT believes that the response of the market (monetary effects) are the only constraint on government tax and spending balance, that the idea of a fixed purse (the “fisc” in “fiscal”) that must be filled by taxes or borrowing is only true with commodity, not fiat, money, and that cosplaying commodity money when you are working with fiat just results in an inaccurate view of the policy landscape.

onlyrealcuzzo 3y ago

MMT is simply a way to get rid of progressive income tax and wealth taxes (property). Instead, everyone pays equally through inflation, and retirees get screwed as their savings get inflated to dust and they have no income to make it up. Maybe that's what you want. But if you think you can just magically fund the government on unicorns because the market is dumb, I have some 1000 year T-bills at -10% yield to sell you.

creatonez 3y ago
Haven't yet found an MMTer who is anti taxation and pro inflation.
dragonwriter 3y ago
> MMT is simply a way to get rid of progressive income tax and wealth taxes (property). No, its not. MMT proponents tend to support progressive income tax and wealth taxes more than currently exists. The MMT observation that the only real constraint on fiscal policy is the monetary impacts, not fiscal balance, also means that fiscal policy tools are appropriate responses to the traditional triggers for monetary action. Need to suck money out of the economy to kill inflation: instead of raising interest rates, add supplemental high-end income taxes (without added spending.) Need to pump money into the economy because of sluggish activity? Adopt immediate low-end benefits (without additional taxes). > But if you think you can just magically fund the government on unicorns because the market is dumb That’s not what MMT believes. MMT believes that the response of the market (monetary effects) are the only constraint on government tax and spending balance, that the idea of a fixed purse (the “fisc” in “fiscal”) that must be filled by taxes or borrowing is only true with commodity, not fiat, money, and that cosplaying commodity money when you are working with fiat just results in an inaccurate view of the policy landscape.