MMT is the idea that governments should augment their tax income by printing money up to the point at which “inflation” breaks out.
“Inflation” isn’t caused by greedy butchers, bakers, and gasoline makers. It’s caused by an excess of purchasing media [i.e. money]. MMT will give the State total control of its quantity and quality.
If the government increases the money supply by, say, 10 times, general prices will go up by 10 times. The value of your dollar savings will drop 90% …
In any event, some people will get hold of a lot more of that 10x increase than others. And they’ll get hold of it earlier, before prices really take off.
Who? Inevitably, cronies.
Look, absolutely every government intrusion into the economy — whether it’s taxes or regulations or inflation — always benefits the people in and around the government. And damages society as a whole.
But they’re sold to the voters, to the hoi polloi, to the “head count,” as something that will put them on easy street. Which is a lie, of course.
But that’s not what the argument should be about. The average guy doesn’t understand economics; he doesn’t think, he feels. …
This matter is essentially a moral question, not a technical question. Does somebody in government have a right to determine your economic destiny? Or not?
The fact that Alexandria Ocasio-Cortez [AOC] — an ambitious, terminally ignorant, morally crippled 31-year-old Puerto Rican bartender — is setting the tone for this whole discussion tells you how degraded the U.S. has become. It’s well on its way to turning into a giant welfare and police state.
Back in the 1970s, when inflation was last a problem, governments redefined inflation as CPI. Before that, inflation used to mean an increase in money supply.
Since 1982, the money supply has been growing at over 10% per year throughout the western world. During that time, CPI has generally been around 2%. Generously allowing 3% growth in money for population and productivity increases, the CPI has underestimated inflation by 5% or more every year.
So where has this money gone, if not into consumer goods? Into assets — the prices of houses, bonds, shares, rare arts, etc etc, are all at record highs. The CPI essentially measures wages, and they have not gone up nearly as as fast as assets for 40 years now.
AOC has no idea of any of this. It will take her years to learn it, at our expense, because there are several abstract or quantitative ideas involved. Sigh.