- 01 Nov 2022 03:24
#15253339
Prof. Bill Mitchell, a founding MMTer, finally agrees with me that the proper MMT response to the current inflation is UBI like checks to the low income population. So, they can pay the higher prices. I would also impose price controls to keep the owning class from sucking up more money and forcing the checks to be increased.
I have been saying this on this and other sites for many weeks if not months. Bill finally says it in print. I assume that this was always his conclusion, but I never saw him say it before.
He wrote:
I have been saying this on this and other sites for many weeks if not months. Bill finally says it in print. I assume that this was always his conclusion, but I never saw him say it before.
He wrote:
Yesterday (October 26, 2022), the Australian Bureau of Statistics released the September-quarter – Consumer Price Index, Australia – which revealed that the quarterly CPI rose by 1.8 per cent (relatively large increase) and rose over the 12 months by 7.3 per cent, the highest annual inflation rate since 1990. The most significant contributors over the year were owner-occupied housing (bushfires wiping out materials), food (floods destroying crops), and gas supplies (cartel profit gouging). So some of the factors driving the inflation are short-term and the others will be resolved by factors outside our control. But with wage pressures absent and the most reliable indicator of medium- to long-term inflation now falling, it is hard to make a case that the rising inflation is now entrenched. The correct policy response should be to provide fiscal support for lower-income households to help them cope with the cost of living rises at present.
- By wat0n
- By Godstud