Today's money is not gold, livestock, gems, or slaves as it has been for thousands of years.
Fractional reserve banking (and the modern electronic economic system) virtualizes currency in a way that would be called a dupe bug in any MMORPG. In our case, it is just a feature of the design.
Local and State governments in the US are dependent on tax dollars (property, sales, excise) in addition to federal subsidies, but the federal government doesn't need taxpayers to fund most of its activities.
Accruing balances of paper is fine, the fiat money is imaginary and propped up by usage convention and some other, stronger things.
Curious how many of the respondents have read MMT literature. Seems to be a theme of believing MMT ignores inflation, which is not at all the case and is addressed directly in Stephanie Kelton's The Deficit Myth.
Credit is created at the point of contract. This was revealed in a 2014 Bank of England report. The current economic arrangements bake in certain percentages of unemployment. MMT suggests reimagining the model to focus on full employment through civic programs that compensate for slow downs in innovation and lending.
Puzzling to see such a staunch offense against alternatives when the present arrangements clearly favor a small few at the expense of the many.
How old is a '3% of GDP trade deficit'? Also far younger than taxation?
The nature of capital and it's relationship to political states is rapidly evolving due to technology and globalization. I'm not saying MMT is the whole cloth correct response to that evolution, but implying that the supply and demand for capital resembles the state of affairs even 25 years ago is myopic.
In terms of Austrian economics, Modern Monetary Theory is really just improving the past 50 years of money printing by directing some of the proceeds to go to individuals. At least it is intellectually consistent, which is more than can be said about the past few decades of Wall Street welfare plus Main Street austerity.
tenuousemphasis|4 years ago
cartoonworld|4 years ago
Fractional reserve banking (and the modern electronic economic system) virtualizes currency in a way that would be called a dupe bug in any MMORPG. In our case, it is just a feature of the design.
Local and State governments in the US are dependent on tax dollars (property, sales, excise) in addition to federal subsidies, but the federal government doesn't need taxpayers to fund most of its activities.
Accruing balances of paper is fine, the fiat money is imaginary and propped up by usage convention and some other, stronger things.
sharklazer|4 years ago
refenestrator|4 years ago
rrivers|4 years ago
Credit is created at the point of contract. This was revealed in a 2014 Bank of England report. The current economic arrangements bake in certain percentages of unemployment. MMT suggests reimagining the model to focus on full employment through civic programs that compensate for slow downs in innovation and lending.
Puzzling to see such a staunch offense against alternatives when the present arrangements clearly favor a small few at the expense of the many.
RC_ITR|4 years ago
The nature of capital and it's relationship to political states is rapidly evolving due to technology and globalization. I'm not saying MMT is the whole cloth correct response to that evolution, but implying that the supply and demand for capital resembles the state of affairs even 25 years ago is myopic.
mindslight|4 years ago