Full text: https://capitalismthesocietalseedsofimp-juny.blogspot.com/2019/08/mmt-economics.html


MMT and full employment

So if MMT prescribes various regulations (and, where necessary, taxes) to control inflation, while keeping interest rates at zero, how does it plan to achieve full employment?

Simple: a job guarantee.

This is an idea that predates and transcends MMT as a school of thought, with advocates among non-MMT economists like William Darity Jr. and Darrick Hamilton, and a history of support from American labor unions and civil rights leaders. The basic concept is that the government would offer, as a right of citizenship, a job at minimum wage (usually $15 an hour for these purposes) with benefits, working for the government or a nonprofit, to any adult who wants one.

This is different from subsidized employment, which exists in limited forms now, and even from the massive public works programs of the New Deal like the Civilian Conservation Corps and the Works Progress Administration, which employed millions but did not guarantee jobs to all.

 

The MMT theory keeps popping up in the news.

Its the despicable way, should they ever win the white house and congress again at the same time, of preparing us for their spending spree.

Free education, guaranteed jobs, free healthcare, school debt forgiven, all part of the plan.

 

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That is a valid suspicion, BUT..
The general idea that there is a correlation between taxes and spending that keeps both inflation and employment at optimal levels is intriguing..

[Eds note: Being a relatively radical non-materialist I share the suspicion for the reason that like the curve that never reaches the asymptote, there being a maximum to which neither trickle down supply-side tax cuts, nor feeding-up revenue of MMT could do in any benign way for the economy, let alone not having deleterious effects on the broader biosphere environment.]

 

Before anyone decides MMT is just the ticket, remember that there is no free lunch.
Also, look at other countries that have tried MMT or some variation of it.

 

Will have to look that up

 

The Economist Who Believes the Government Should Just Print More Money
The Bernie Sanders adviser Stephanie Kelton argues that “How will we pay for it?” shouldn’t be a central question in American politics.
Link: https://www.newyorker.com/news/news...pe=owned&utm_medium=social&utm_source=twitter

But the basic principle of M.M.T. is seductively simple: governments don’t have to budget like households, worrying about debt, because, unlike households, they can simply print their own money. So M.M.T. proposes that the constraint on government spending shouldn’t be debt but inflation: How much new money can you pump into the economy before prices rise?