Home » xyzzy » Dungeon » Modern Monetary Theory (or, how I stopped worrying about the natl debt.)
Re: Modern Monetary Theory [message #91710 is a reply to message #91701] Wed, 15 April 2020 14:25 Go to previous messageGo to previous message
Rusty is currently offline  Rusty
Messages: 1186
Registered: May 2018
Location: Kansas City Missouri
Illuminati (3rd Degree)
I was kind of baiting you a bit with the Keynes infatuation. As you know and point to obviously there are basic principals of influences in the economics spectrum. They tend to wash out in a reflection of principle of allegiance in our two party system. But there are more nuance than classical laissez faire and Keynesian economics that make up the spectrum. I'd like to hope and feel there is an opening with better cooperation among the parties by seeing the objectivity of what the MMT offshoot points out that might empower both parties and ideologies to root out it's entrenched stalemate. They do share a common bond already. If they'd realize the detriment of the New Keynesian evolution also known as neo-liberalism that has arisen which both parties have taken a stake in. I think the link article gives a wonderful example to how our economy has been co-opted to run inefficiently due to a debt burden driving down the public's ability to thrive.
MMT points to a sovereign governments capacity to be able to pay it's debt obligations without taxing first. That is what actually takes place.
If politics can ever come to that understanding and apply rules enabling spending into the real economy rather than the finance debt economy. Throwing good money into bad actors. There might be an eventual reduction of nation debt to a reasonable level. Applying austerity to do so is counterproductive to realizing that aim.
Let the bad actors absorb the austerity for a change.
 
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