/biz/ - Business & Finance

>>17827072

>>12811491
"Modern Monetary Theory"

it goes like this:

the government controls the currency, all that shit about the Federal Reserve not being a branch of the government is a silly conspiracy theory

so the debt isn't real, it's just the fed and the treasury pretending to owe each other money

so the government can just issue more currency to buy whatever it wants

taxes don't raise money, because as we've just demonstrated, the money doesn't need to be raised, the government controls it. taxes just control inflation

now, all of these are basically true statements, from a certain point of view. problem is, the whole "act like the national debt is real" thing acts as a sort of control rod in the nuclear reactor of the economy.

problem comes when a True Believer gets elected, all of a sudden its time to spend whatever you want to spend on universal health care and basic income. (or if it's a right wing True Believer, on the military, whatever. right wingers aren't currently into heterodox economic policy, but who knows, could change).

raising taxes on everybody, right after you told everybody that you don't need taxes to pay for things, isn't politically tenable, so you get runaway hyperinflation.

that whole Green New Deal thing brought out a bunch of MMT acolytes, for example. keep an eye out, and buy ammo

>>11888888