Modern Monetary Theory SHOWDOWN!
Two economic experts take on arch-Austrian Stefan Molyneux and attempt to convince him that Federal Government deficits are FABULOUS for the economy!
1. As presented, the MMT presumes that government creates money. We know that in civilized world there is an attempt to prevent this by having an independent central bank. In fact money is still created proportionately to private need, and only then borrowed by governments. But this separation works less and less, as central banks force their fractional banking system to eat up more and more government debt. To that extent, the MMT may be proportionately valid.
2. As presented, the MMT presumes that people would not do for each what other may need, unless the government issues money and then taxes them in that currency. That is clearly not true on it’s own, people would be helping each other even without government issued currency. However as governments regulate free market into oblivion and require that payments be made in legal tender, this may be correct proportionately.
3. Neither is required to explain why there’s little inflation. When the private sector is taxed to the limit, there will be no inflation in the private sector. Governments will be far more able to pay for anything and they will be offering to buy stuff for us, to help us with our increasingly harder lives. And government purchasing is where the inflation will be happening, and it in fact is happening. And fewer and fewer businesses will care to serve us rather than the government. Which is also happening.
Thanks to everybody for a great show!
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