[ExI] mmt question

[spike at rainier66.com]

-----Original Message-----
From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of BillK via extropy-chat
...
Subject: Re: [ExI] mmt question

On Mon, 13 Feb 2023 at 05:53, spike jones via extropy-chat <extropy-chat at lists.extropy.org> wrote:
>
> Have we anyone here who is up to speed or has expertise on Modern Monetary Theory?  I have looked into various sources and haven’t found an answer to a question I eventually posed to ChatGPT.  It didn’t really answer.  Here’s the question:
>
> Me:  What happens in modern monetary theory when part of a government accepts it and part of that government rejects it?
> ChatGPT:
...
> _______________________________________________


>...I can't say I've noticed either of the two large US political parties wanting to stop deficit spending, except when trying to score points off the other party...

Exactly right BillK, which is why there are more than two parties.

>...They said MMT spending wouldn't cause inflation...

We didn't believe it, but ja they said it.  We knew MMT was wrong and that sooner or later the bills would come due.

>...the deficit money is spreading into everything and the poor are getting poorer – much poorer...

Ja, and that poverty is coming to visit Social Security recipients bigtime.

I really don't understand the reasoning of those who thought MMT would not be inflationary.  I suggested if the government really can just print as much money as it needs, why should we pay taxes?  Just print whatever would have been collected.  Then the government could spend as much as it wants, so the two large parties would be happy, the Greens would be on board because there would be infinite money to do conservation projectes, no taxes, so the Libertarian Party would be on board (even while some within it would be pointing out the obvious: this isn't sustainable) and then we would all just party along until the ships full of Chinese manufactured goods suddenly and mysteriously stopped arriving. 

<https://fee.org/articles/mmt-is-dead-it-must-now-be-buried-for-good/>
Quotes:
>>...MMT Is Dead. It Must Now Be Buried for Good Weaning the government and the Fed off spending and printing will be a lengthy and agonizing process. But it needs to happen.
Tuesday, January 3, 2023    David Sukoff

>...Inflation, as we commonly understand it, had arrived. It was mathematically pre-ordained, and yet still somehow unexpected.  Historically high. We’re talking 1970s high. --------------

BillK

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1970s inflation high if we are lucky and get the government spending under control somehow.  Otherwise we are looking at Zimbabwe high.  We could see Zimbabwe style inflation while Social Security recipients receive 1970s-style pension increases.  This is going to be bad news methinks.

spike