Modern Monetary Theory: The little-known consequence of the massive coronavirus bills

Modern Monetary Theory: The little-known consequence of the massive coronavirus bills, by JD Rucker.

A good chunk of America knows about the economic disaster that’s facing us, though some are quite comfortable either being rich or accepting the net-net gain they’re getting from a combination of unemployment, bonuses tacked on to unemployment, and the checks we’re getting from the government (though I still haven’t seen mine). …

Fiscal conservatives will point to the national debt. Libertarians will point to the massive dependency on government that is being established. Both will point to the devaluing of the dollar that will come. …

Many on the far-left are balking at Pelosi’s $3 trillion proposal because IT ISN’T BIG ENOUGH. Seriously. They’re saying rent and mortgages should be paid by government for months, even years. They’re saying the government offering to pay student debt up to $10,000 through September, 2021, is too limited in both term and scale. They’re saying there’s not enough in there for climate change even though, oddly, there actually is some climate change language in there. And here’s the thing. It wouldn’t have mattered if all of the radical progressives’ current demands had been met by Pelosi’s proposal or if it were 4, 5, or more trillions of dollars. They would have still complained that it wasn’t enough because that’s what they’ve been trained to do. …

With Modern Monetary Theory, the government essentially prints whatever money it needs in order to pay for whatever programs it wants. That’s what’s happening with these coronavirus bailouts as we spend money that never actually existed. …

If we do not collapse from the huge coronavirus bailouts, the far-left will call for more of the same. They’ll say that if we can spend the money on the coronavirus without completely destroying ourselves, why aren’t we doing the same thing to end homelessness? Why are there still people living in poverty? Why are children going hungry? Most importantly, they’ll ask why we’re not facing the “existential threat” of climate change by throwing trillions of dollars at it? They’ll say, “100,000 Americans died from the coronavirus and we spent $X trillion on it. Climate change will kill 100,000,000 Americans if we don’t act even more aggressively now!”