Modern Monetary Theory
"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.
It's not something to implement someday, it is exactly how our money works TODAY!!
The currency issuer is not constrained to balanced budgeting in the same way as a currency user.
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?
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.
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!
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- MMT 101
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- All Articles
- Federal Debt
- MMT 101
- MMT Academics
- MMT Rebuttal
- Taxation
Canada: Flagellation Letter in National Post
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.
Social Security Cannot Go Broke!
Sam Levey March 23, 2017 Economic Justice Mixed Media
It is impossible for Social Security to go broke. All it takes to see that is a ride on the subway.
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)