The Big Myth of Government Deficits

[Hood Critic]

Ms. MMT herself gave this recent talk




Obviously relevant because Machin was on CNN earlier this morning demonstrating the fact that he has no idea how the deficit works.

 

[DEAD7]

Talk that shyt Steph.

 

[OfTheCross]

Yeah...I heard the pod when this dropped a few days ago.

She's right as far as I can tell. And it does seem like the conversation is moving more towards speaking about inflation than debt.

I can't help but be reminded about the book 1984, though. Government paying people to dig and fill holes

 

[the cac mamba]

this is bullshyt the debt is gonna collapse on someones grandkids, its just a matter of whose. what we're doing is not sustainable

i mean im 31 and the idea of social security is laughable its a ponzi scheme

 

[cKondomsucK6]

fdb

mmt isn't modern , its been proven to fail

printing money is literally inflation , which is basically a tax

 

[Hood Critic]

fdb

mmt isn't modern , its been proven to fail

printing money is literally inflation , which is basically a tax

Source.

 

[Hood Critic]

this is bullshyt the debt is gonna collapse on someones grandkids, its just a matter of whose. what we're doing is not sustainable

i mean im 31 and the idea of social security is laughable its a ponzi scheme

Provide a source or evidence of this theory.

 

[Hood Critic]

Every MMT denier's argument is always the same...it will fail, someday. When is that someday and why? I never see a detailed explanation to support this claim. The reasoning is always based on two tenants - 1. this is what economist have said as long as they could remember. 2. They're scared foreign debt holders will get nervous.

Most of these same people felt it was completely reasonable for the government to 'stimulate' the economy during the pandemic but during other times it was doom and gloom with a side of inflation. The payments paid to citizens as part of pandemic relief has appeared to have a net positive effect on the economy, despite the people who have been screaming inflation the past year.

I want, better yet, challenge someone to provide a well thought out counter to MMT on where its been tried, how it was implemented and failed. I'm not incredibly pro MMT but I find most arguments against it seriously lacking, would love to digest a serious opposing opinion.

 

[Pressure]

Every MMT denier's argument is always the same...it will fail, someday. When is that someday and why? I never see a detailed explanation to support this claim. The reasoning is always based on two tenants - 1. this is what economist have said as long as they could remember. 2. They're scared foreign debt holders will get nervous.

Most of these same people felt it was completely reasonable for the government to 'stimulate' the economy during the pandemic but during other times it was doom and gloom with a side of inflation. The payments paid to citizens as part of pandemic relief has appeared to have a net positive effect on the economy, despite the people who have been screaming inflation the past year.

I want, better yet, challenge someone to provide a well thought out counter to MMT on where its been tried, how it was implemented and failed. I'm not incredibly pro MMT but I find most arguments against it seriously lacking, would love to digest a serious opposing opinion.

Wouldn't it be more beneficial o just prove that it actually works?

 

[Hood Critic]

Wouldn't it be more beneficial o just prove that it actually works?

That was my point of mentioning pandemic relief, it was a brief example of what it would look like.

 

[Ezra]

fdb

mmt isn't modern , its been proven to fail

printing money is literally inflation , which is basically a tax

Youre correct - it's not modern. It's been happening since we moved to a fiat currency, and has happend to any nation that has a sovergn fiat currency.

It's not something that fails or succeeds, it's a description of how economies work.

'Printing money' does not cause inflation. Printing more money than production of the a country can handle causes inflation. If 'printing money' caused inflation, we should have seen it in the years leading up to the pandemic. Unemployment was down to historic low levels (by the bullshyt way we measure it). When there's no one left to hire, it indicates we're at the limit of what we can produce. We had been at the level since the beginning of Obama's 2nd term and we were 'printing money' like crazy. We should have seen inflation. Why didnt we?

The fact is, you cannot find one example of inflation due to a country w a sovereign fiat currency created on the demand side. Everytime it's been due to supply side. The Oil embargo in the 70s. The current transitory inflation in some areas because of COVID.

 

[Pressure]

That was my point of mentioning pandemic relief, it was a brief example of what it would look like.

I think a lot of people generally default to it won't work because they look at it the same way they look at their own personal finances and that's problematic for a variety of reasons.

Sadly, It's an easy angle for conservatives to push even if it isn't true, just like trickle down economics.

Proponents of MMT should just come up with their own trickle down like slogan/explanation for why it should work.

 

[DEAD7]

It's not something that fails or succeeds, it's a description of how economies work.