A Primer on Government Surpluses
It is difficult to believe that our economy can continue to grow robustly as the government sucks disposable income and wealth from the private sector by running surpluses.
It is difficult to believe that our economy can continue to grow robustly as the government sucks disposable income and wealth from the private sector by running surpluses.
“By what process, I wondered, have we convinced ourselves that we do not have enough U.S. Dollars to pay ourselves to create the goods and services we need to prosper as a society?”
Its influence is felt even in liberal or progressive organizations, and among progressive commentators and writers, who all share ideas like fiscal policy discipline and tax reform.
The great power of MMT is its lesson that the federal government can create new dollars by running deficits to do things that should be done.
The “fiscally responsible” solution is probably not what you think it is.
A nation like the U.S. with a sovereign currency that borrows in that currency and allows that currency to “float” is nothing like a household when it comes to budget.
There never has been the kind of independence supposed by orthodox economists.
In this blog we look at the myth of Fed independence from its creator, the Congress and from the Treasury.
It has been commonplace to speak of central bank independence—as if it were both a reality and a necessity…