Why do they have to be mutually exclusive?
Where has MMT been successfully implemented to achieve your liberal fantasies?
Because MMT says the debt is not what most economists preach. When most say the debt is going to bankrupt the country. The complete opposite is held by MMT economists.
So, it’s limited by the number of paper bills that can be produced?
If you mean something else, explain.
Resources and productive capacity are often limited mainly by their value(obviously, nothing is unlimited; but the cost of more extraction/production is often greater than people are willing and/or able to spend).
The only way money can just be printed into existence without causing harm is to have a centrally-controlled-and-planned economy.
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There’s a reason the combined AUM of those economists is $0. Nobody can take that seriously. OK, let’s assume the US doesn’t default (we’ll pretend the unfunded liabilities >4x the national debt don’t exist either). There is still a crowding out impact from increased Treasury issuance used to plug the delta between expenditures and receipts. There is finite demand for debt, and in order to compete with Treasuries this increases the WACC of private business. Fewer projects have an expected positive after-tax ROIC-WACC spread and fewer are undertaken. The productive process becomes less roundabout and contracts, projects that require the scarcest factor of production (labor) are now gone, unemployment rises and the output of goods and services falls. But don’t worry, there’s been no formal default so according to MMT nonsense there are not massive consequences. I swear, these people couldn’t operate a hot dog cart.
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The North Pole, where Santa lives. Duh!
Does it ever worry you that you buy into ideas that you can’t explain?
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You really exhibit an extraordinary inability for critical thought with every post you make … it really is quite amazing
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Bruh … cultists don’t worry about that shit and you know it … true believers lack that ability … probably why i get sucked into following these threads for the sheer spectacle
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Try wars and trillions of dollars in bank bailouts. Neither of which is a fantasy. Those are right-wing fantasies.
He said “successfully.”
Indeed.
What are?
Oh great, a business reference. A completely different economy than the federal government.
I’ve said it before, but I’ll say it again: There is no way that you’re able to both repeatedly find this forum and seriously post something like that.
MMT is the fairytale that the State has a magic wand which insulates them from the laws of scarcity. I already explained the complete neglect of capital costs and the impact on capex/expansion of productive processes and what that means. You couldn’t google a canned response from the AUM of $0 group again? I do appreciate people like you and them, perfect contrarian indicators.
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And you possess an ignorant view on economics. You believe a business budget works the same as the federal governments budget. But then try and disparage me for knowing it works differently. Do yourself a favor and do some reading or watch something economically educational like this podcast Macro N Cheese Podcast | Modern Monetary Theory or don’t stay ignorant.
The scarcity lies in the resources not the money.
And you believe everything must be run for profit. It’s a great theory but look at the results in some industries. Healthcare for example.
No shit.
And there’s the admission that MMT is a communist circle jerk
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Correct, and MMT believes it can indefinitely monetize government debt because allegedly the demand curve for it is inelastic. The very nature of central banking denies the reality of scarcity; it assumes rates/asset prices aren’t bound by consumption vs. real savings, when in fact the resources of savings are precisely what drives it.
Profit and loss are price signals for optimal resource allocation. Without profitability motives the US would not have 90% of the world’s biotech funds/companies.
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How many debates have you won against proponents of MMT, in the opinion of
@castoli711?
This isn’t the question. How many debates are won between economists of MMT and those promoting the economics of the gold-standard variety?