Author Topic: Modern Monetary Theory  (Read 253 times)

Ecurb Noselrub

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Modern Monetary Theory
« on: March 12, 2019, 05:27:47 PM »
Does anyone have any background in or strong ideas about Modern Monetary Theory (MMT)?  It is the foundational theory of some of AOC's and Bernie Sanders' ideas, such as Medicare for All, the Green New Deal, free tuition to college, guaranteed jobs, etc.  Generally, the idea is that money is simply a creation of law, and the government can print as much of it as is needed.  Inflation can be controlled through the central bank by tinkering with interest rates. That's the idea.  Whether it would work in the US or a large economy - I have no idea. Thoughts?

Tank

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Re: Modern Monetary Theory
« Reply #1 on: March 12, 2019, 06:09:24 PM »
I shall wait with you  :)
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Unsapien

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Re: Modern Monetary Theory
« Reply #2 on: March 12, 2019, 09:33:51 PM »
Does anyone have any background in or strong ideas about Modern Monetary Theory (MMT)?  It is the foundational theory of some of AOC's and Bernie Sanders' ideas, such as Medicare for All, the Green New Deal, free tuition to college, guaranteed jobs, etc.  Generally, the idea is that money is simply a creation of law, and the government can print as much of it as is neededInflation can be controlled through the central bank by tinkering with interest rates. That's the idea.  Whether it would work in the US or a large economy - I have no idea. Thoughts?

I'm not familiar with MMT theory, but I will read, I'm also not American so I'm not familiar with "AOC" but I know who Bernie Sanders is. As far as I'm concerned, at the outset however, is that these two ideas that I've bolded in black above are very dangerous ideas.

Most western countries have been able to do all the things highlighted in red without taking extreme measures as I think this MMT idea might be. The idea in blue sounds nonsensical, what is needed is just a reliable "safely net" that is able to catch us when we fall but also incentivises us to get out there and look for another job.

Our PM probably still thinks that "the budgets will balance themselves", guess where I live...
"If we are to be damned, let's be damned for what we really are." - Captain Picard

Icarus

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Re: Modern Monetary Theory
« Reply #3 on: March 12, 2019, 11:26:34 PM »
I look kindly upon Bernie, Elizabeth and  a small measure of kindness...or perhaps amusement for AOC. The lot of them may have good intentions but in this world we have to propose programs that are actually doable.

It is true that many western countries, and a few eastern ones,  have installed socialized health care, free or low cost college education, and a few other citizen benefits that many Americans label Socialism which so many of them equate with communism.  We would have the greatest difficulty with implementation of any of those things that other nations have managed to make a reality.   

Unasapien;  AOC is a freshman, 29 year old, congresswoman who manged to unseat a career politician who had been the district representative for many years. Her name is Alexandra Ocasio-Cortez.... thus AOC.  She is definitely a current political rock star. She has some Utopian ideas and she is pretty good at making them known. She is fiesty as hell and most of the time equal to any of her opponents in a debate setting. She is also a fairly nice looking, young woman with a sharp sense of humor which probably enhances her rock star status.

I am going to have to go to the well in order to get up to speed on the details of MMT.  I reckon that is the
part of the economics courses that I never did take.

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Re: Modern Monetary Theory
« Reply #4 on: March 14, 2019, 02:34:20 PM »
Does anyone have any background in or strong ideas about Modern Monetary Theory (MMT)?  It is the foundational theory of some of AOC's and Bernie Sanders' ideas, such as Medicare for All, the Green New Deal, free tuition to college, guaranteed jobs, etc.  Generally, the idea is that money is simply a creation of law, and the government can print as much of it as is neededInflation can be controlled through the central bank by tinkering with interest rates. That's the idea.  Whether it would work in the US or a large economy - I have no idea. Thoughts?

I'm not familiar with MMT theory, but I will read, I'm also not American so I'm not familiar with "AOC" but I know who Bernie Sanders is. As far as I'm concerned, at the outset however, is that these two ideas that I've bolded in black above are very dangerous ideas.

Most western countries have been able to do all the things highlighted in red without taking extreme measures as I think this MMT idea might be. The idea in blue sounds nonsensical, what is needed is just a reliable "safely net" that is able to catch us when we fall but also incentivises us to get out there and look for another job.

Our PM probably still thinks that "the budgets will balance themselves", guess where I live...

She has to say that because she’s not getting anywhere. Much as I hope for a deal, our Attorney General was quite right to point out the disadvantageous terms somewhat disguised in the deal offered. We shouldn’t agree to being tied to those onerous terms permanently. The Brexiteers have a lot to answer for.
Hell is empty and all the devils are here. Wm Shakespeare


Unsapien

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Re: Modern Monetary Theory
« Reply #5 on: March 16, 2019, 09:32:25 AM »
Sorry... I guess Trudeau, and/or his speeches are not as well known as I though they were... which is probably a good thing.

I'm Canadian...eh.  ;)

I like to call him Prime Minister Selfie.
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