Modern Monetary Theory

A leftist/marxist anti-Economic theory claims governments can print as much money as they want or run infinite debt.

A leftist/Marxist anti-Economic theory claims governments can print as much money as they want or run infinite debt. There's no correlation between money supply or debt ratios since they own a monopoly on money. This is all smoke and mirrors used by leftists to collapse economies, but spend cash and collapse the economy as a way to get control (Marxism).

ℹ️ Info

~ Aristotle Sabouni
Created: 2022-07-13

Facts[edit | edit source]

Governments do not need to rely on taxes or borrowing for spending, since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt.

No real economists believe this. Those that believe it are not real economists just leftist activists posing as economists. This is called a Hetrodox (not agreed with) theory.

Recorded history has never shown any place that this actually worked. They sometimes point to Japan, but ignore their lost decades where they spend 20+ years with no economic growth because they were too busy servicing the debt.

NOTE: While it's never worked, it's also never been tried with a global fiat currency like the U.S. petro-dollar. The problem is that MMT folks seem to assume that people can't/won't flee the fiat currency if it starts to go valueless, or people realize that the controlling country is borrowing against and thus devaluing everyone's dollars. This is exactly when China is trying to create the Yuan as an alternate fiat currency and replace the petro-dollar. Thus undermining faith in the dollar, could have catastrophic effects for the U.S. currency and economy.

If rampant spending worked, then the countries that spent the most, and had the most central authority, would have been the most successul. Which is the same message as Keynesianism, just MMT is Keynes on steroids. So how do they explain the Keynesian failures? Trick question, since they don't. They just ignore it. That wasn't true Socialism/Fascism, this time it will be different.

Conclusion[edit | edit source]

It basically takes everything wrong with Keynesian Economics, which has never worked in the real world to do anything good, and then it detaches what tenuous threads that has with reality. Basically saying that the reason Keynesianism has failed everywhere it's been tried, is they didn't think big enough.

Both Obamanomics and Bidenomics use this idea that you can spend your way out any catastrophe. Obama with the 2008 Financial criss, and Biden with the Democrat created COVID economic crisis. But Obama had the weakest economic recovery from a recession in 50 years. And Biden's spendaholic binges resulted in significant inflation.

The Marxist cure for inflation in MMT theory is what? The basics are that to them, Government and Private Industry are competing for the same resources: and so they think the Government/Elites should raise taxes and interest rates, until individuals and the private sector can't afford to buy anything; thus fixing inflation. E.g. everyone becomes broke, but Government has more power and money than ever. If that thought doesn't sound anti-American, then you are a moron.

🔗 More

Economics
The study of choice, scarcity, Social reactions to policies, and unseen consequences.

🔗 Links

Tags: Economics