MMT
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So, I know, it’s someone being mean on the internet, but the substantive point is that there was a time when currency was refused for taxation, and still existed (and that metallic value drove the nominal value).
Another MMT article link. Not sure if it adds anything to the topic
https://www.alternet.org/2021/03/modern-monetary-theory/
Biden’s economic team may not have arrived in D.C. as MMT acolytes, but they will leave as its greatest practitioners. They don’t have a choice.Not sure if it should be here or on the UBI topic
Democratic Reps. Rashida Tlaib and Pramila Jayapal on Tuesday introduced legislation that would provide everyone in the U.S. with a one-time payment of $2,000 and monthly recurring payments of $1,000 thereafter.
The Automatic BOOST to Communities (ABC) Act proposes financing the payments with an unconventional plan that would direct the Treasury Department to use its legal authority to mint as many $1 trillion platinum coins as necessary to fund the legislation, which would continue until a year after the public health emergency ends or the unemployment rate stabilizes at a low level.
Another demolition job on MMT, this time from a perhaps unexpected source, the Von Mises Institute (or perhaps not so unexpected as they, like us, are pre-Kenesians). It is quite good actually, but a pity, though inevitable given who they are, that at one point they describe MMT as “soialist”:
Some may find this a useful and helpful read
To conclude, MMT remains hesitant to take the decision-making on investment and jobs out of the hands of the capitalist sector. As long as the bulk of investment and employment remains under the control of capitalism, government expenditure can’t be raised permanently since deficit-financed spending ultimately meets its limits in the contradictions at work in the sphere of private production. In the long run, the concentrated dominance of big business and private monopolies needs to be broken down if the effects of monetary financing are to be sustainably continued even after the exhaustion of unused resources. In short, MMT provides an anti-neoliberal opening but does not reach the socialist conclusion that a radical reconstitution of the system is not only desirable but necessary.
The problem is that the left has created and spread the conception that the state is a public institution instead of the private organ of the capitalist class, therefore, it will fall under the false conception of the myth of taxation, deficit, state debts, public debts, financing for wars, creation of money from the thin air
The trillion-dollar coin
I can’t help thinking about the classic Gregory Peck movie, the million-pound note
It took about an hour to do this on a fiddly ‘smart’ phone.
https://profile.theguardian.com/user/id/15837160?page=1A new MMT text-book?
A review
For those with an eye on economic theory
private credit and debt are inconsequential. A money loan of one person is a money debt of another. They cancel out. And since banks simply translate the saving deposits of some into loans made to others, they too are inconsequential.Of course, banks are not useless. They help eliminate the friction of barter and facilitate the creation of deposits-read-money through the money-multiplying cycle.
(never sure whether this should be in the 100% banking thread)
This is bog standard currency crankism based on the ideas of the 19th century American currency crank Edward Kellogg. The author is arguing for the maximum rate of interest to be set at 1 percent. As you suggest, it shouldn’t really be on this thread but only the 100% banking one. The author is in fact critical of MMT.
Incidentally, the passage about banks in that review of Keen’s book is not Keen’s but that of the “neoclassicists” which he goes on to criticise. Despite their other misconceptions the “neo-classicists” are right on this one — banks are essentially financial intermediaries.
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