An Alternative Meme For Money, Part 7: Framing Deficits
A government deficit will result if the nongovernment sector has a surplus—a perfectly sustainable balance.
A government deficit will result if the nongovernment sector has a surplus—a perfectly sustainable balance.
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.
Understanding how federal finance works makes for better predictions and sensible policy.
Beautifully simple are a sovereign nation’s sectoral balances. They readily demonstrate that the government’s negative is the public’s positive, and vice versa.
The current economic framework within which policy is developed seems incapable of addressing climate change. Even policymakers who acknowledge the magnitude of the problem are avoiding real solutions, not knowing how solutions can be funded.
This MMT tutorial provides short answers to several questions.