Modern Monetary Theory

What is MMT and how could it completely change your perception of life in a nation with a sovereign fiat currency?

MMT - What is it anyway??

"I've heard it called the Magic Money Tree"
"If we just keep printing money, we'll devalue the dollar!"
"Printing money will cause inflation!"
"OhEmGee the National Debt!!"

We've all heard loads of rumors...now it's time to get the truth!

Use the arrows or swipe through the slides to learn more.

Modern Monetary Theory or MMT

MMT is just a description of how sovereign fiat, floating exchange rate currencies like the US dollar actually work. MMT helps us move past the outdated gold-standard thinking that hasn't been right for decades.

It's not something to implement someday, it is exactly how our money works TODAY!!

Sovereign currency issuers...

Many governments issue their own currency. The sovereign issuer of a nation’s currency is nothing like the users of its currency - such as households, businesses, or state and local governments.

The currency issuer is not constrained to balanced budgeting in the same way as a currency user.

Government Solvency

Sovereign governments can never run out of the currency they issue.

No matter what politicians or talking heads on TV say, when a country issues its own sovereign currency, it can never run out.

That would be like the scorekeeper in baseball running out of points! Crazy, right?

Taxes and Federal Spending

Federal taxes are not collected in order for the government to spend later. They are actually deleted out of existence!

As a matter of fact, in order for us to pay taxes in the first place, the government, the CURRENCY ISSUER, has to create (or spend into existence) the money. Then, we CURRENCY USERS have to find a way to get some money to pay our taxes.

The National Debt

It is not possible for a currency issuer to go broke.

Most governments, most of the time, will run fiscal deficits. This is not a matter of concern, and is indeed a good thing, as it means most private sectors will be able to run the financial surpluses they wish to add to their net savings.

The government’s deficit is our surplus – we should be glad all that money hasn’t been taxed out of the economy!

Where Do I Learn More?

Look through our collection of articles below to learn more! They are conveniently categorized and there are plenty of resources from MMT Beginner to Macroeconomics Expert level.

Larry Kazdan January 24, 2018 Economic Justice Published

So-called “fiscal anchors” instituted in peacetime are simply ideological vehicles intended to limit government spending, much as medieval monks recommended flagellation as a means of curbing unwanted desires.

The Truth About ‘Printing Money’

Steven D. Grumbine December 26, 2017 Economic Justice MMT Beginner

If government spending is just “printing money” then taxing is simply “unprinting money”. It’s a circuit.

Yes, We Need to Start Taxing the Rich More: Here’s Why

Amanda Perry October 7, 2016 Economic Justice Published

Higher taxes on the rich are a means by which to slow the process of the accumulation of wealth. By slowing the process of accumulated wealth, higher top marginal taxes increase income equality.

Let’s Get Down to Business and Understand Some Practical Economics

Steven D. Grumbine September 17, 2016 Economic Justice Policy Advocacy

It’s time for you to stop allowing yourself to get sidetracked with old thinking.

7 Deadly Innocent Frauds of Economic Policy

Jabari Morris September 11, 2016 Content Missing Economic Justice

The presumption of innocence by those perpetrating the frauds is characteristic of Professor Galbraith’s cynically gracious approach.

Is Bernie short $17 trillion on his healthcare plan?

Steven D. Grumbine August 12, 2016 Economic Justice Policy Essay

Bbbbbut Bernie is $17 trillion short on his healthcare plan… relax Francis…
Funding The Revolution: Trying to make econ fun to learn

Modern monetary theory and inflation – Part 1

Bill Mitchell July 7, 2010 Economic Justice

It regularly comes up in the comments section that Modern Monetary Theory (MMT) lacks a concern for inflation. That somehow we ignore the inflation risk. …

Why we need to debunk the 'deficit myth' - BBC REEL

Government spending is increasing at an unprecedented rate to deal with the effects of the coronavirus pandemic. Many people worry this could burden future generations.

However, economist Stephanie Kelton, author of The Deficit Myth, argues that we need to rethink our attitudes towards government spending.

Could Modern Monetary Theory help us navigate our way out of this crisis – and even help build a fairer economy?

Producer: Dan John
Animation: Jacqueline Nixon

(Republished with permission from the BBC)