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I was goofing on it to a certain extent, but the central problem with MMT -- as I see it -- is that the "deficit spending doesn't cause inflation" part of it wi
by marcus0x62 3y ago
I was goofing on it to a certain extent, but the central problem with MMT -- as I see it -- is that the "deficit spending doesn't cause inflation" part of it will work, until it doesn't. MMT has developed (in popularity, at least,) during a highly unusual period of economic stability and peace in the developed parts of the world. Extrapolating that experience into perpetuity is beyond foolish.
Put another way, go ask some African nation that got "bailed out" by the IMF if their "deficits didn't matter."
- neilwilson 3y agoI'm the government. I buy your labour for $100 after tax, and you leave that in your bank account - which you have to do or you would get taxed on further spending/income which would reduce the deficit on that spending below $100. Where's the mechanism for inflation? It's government spending that doesn't cause a deficit that is potentially inflationary, not the deficit spending part.