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Without Further Ado, Wall Street Weighs In On MMT, Unlikely Pop Culture Phenomenon
Modern monetary theory is all the rage right now and suffice to say not everyone is a fan.
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We’ve already had mmt for over a decade. Except that all of the m went into the stock market. That’s where the inflation resides.
Again, I gotta call bullshit on this no-inflation-in-the-real-economy idea. Two eggs, toast, and greasy hash browns at the Hot & Crusty around the corner now $8. Empty storefronts up and down Broadway, Amsterdam, Columbus because only national chains can now afford the rent — and they’re under pressure from the online Amazon model. Rents in NYC are absurd. Healthcare costs are absurd. Tuition is absurd. Prices on most groceries way up. My cable bill, my wireless bill — ridiculous. What do people mean when they say inflation is tame?
How come no one answers the question of “what’s wrong with being another Japan?” Everyone seems to be just ducks with holding Yen. They’ve been at ‘being Japan’ for over twenty years and their much ballyhooed doom hasn’t materialized. Yes, demographics you say, and soon coming to TUSA without immigration!
I see pros and cons for MMT. I think the basis for it is strong. Unlimited money with only inflation as the consideration has enormous potential for social welfare. Ironically, this deep desire for cheap money would lessen the inherent value of capital and would bring elements of wealth redistribution without actually redistributing wealth.
If I were into philosophy, I could see this economic thought as the first step towards a more ‘utopian society’. The irony…
Bas- Interesting thoughts, but I do not see inherent wealth redistribution rather the opposite. The current model would funnel the majority of the economic gains to those who present own the means of wealth creation. A very specific set of wealth re-distribution programs/policies/legislation would be needed to enact wealth re-distribution. This is why the American Oligarchs are losing their minds about MMT because the know the economic ethos behind it requires these wealth re-distribution efforts once it is applied in practice.
Thanks for the piece H. Best context around MMT I have seen so far, though I haven’t had the chance to do any proper research. All I see is bunch of bozos screeching about how MMT is a terrible idea because the text book they read in the 80’s said so. I have yet to hear a cogent argument against MMT though think there is one. I haven’t figured out the math, but it seen to be that the risk of MMT is future demand destruction and/or deflationary pressures mostly related to a deceleration of velocity of money. I admit this thought is more anecdotal then well supported, but there it is…