Rugoz wrote:
Then what's your point? You said
but you didn't say what policy changes that would imply.
My overall point is that we can't just drop MMT concepts into the current system. We need to change the system. The primary part of which is to change how taxation is done.
Basically, what needs to be done is that taxes adjust automatically. It needs to be built into the system in a way that politicians can't mess with it. An example that was given is unemployment insurance. When times are good, the insurance premiums that companies have to pay decreases, but when times aren't so good, or they are expected to not be so good, they automatically have to pay in a bit more.
We would have to do similar with MMT, so that the system can balance itself automatically. What this means is that your paycheck could potentially will go up/down paycheck to paycheck as conditions change in the economy. This is necessary, but psychologically, people might have a hard time accepting this. The truth of the matter is, even in todays system every pay check we get is less than the previous due ot inflation, but the number stays the same (assuming hours worked is the same, or you're salaried). Nonetheless, this "steady paycheck" would be hard to give up.
Steve_American wrote:I'm so glad to have you on the team.
So, how can we convince others to join us?
One thing that I really like about it is that basically, when money is printed/created. Rather than handing it over to banks like it's done now. It's directly given to "the people" in the form of government spending on public goods (infrastructure, healthcare, military, etc. etc., all of which create jobs).
Other points I like about MMTers. We don't exactly know how inflation works, so the traditional interpretation of fed interest rates and inflation aren't solid. Also, governments could probably spend more, and we need infrastructure.
Last, ultimately, budgets don't matter in this setup. It's the more important stuff that matters. Capacity for production being the big one.
It's very interesting.
I can think of 11780 reasons Trump shouldn't be president ever again.