In sum, MMT suggests that the printing of money can be calibrated to the fulfillment of short and long term needs. Money could and should be provided for health care for all, support for education (K through university), structural renovation, transitioning away from fossil fuels, the creation of jobs for all and universal basic income programs, and support for a Green New Deal. These programs were vitally needed before the pandemic and are even more essential since its onset. Of course, cutting military spending, pork-barrel legislation, and creating a progressive tax system helps. But the human needs articulated by progressives should be defended. And doing so requires a realistic assessment of the causes and consequences of the national debt. History has shown that the idea of “the debt” has been an ideological tool used to challenge the creation of a just society.
Modern Monetary Theory
One of the readers of this blog recently asked me my views on topics such as the call by some left economists for a general debt forgiveness (Debt Jubilee), on Modern Money Theory (MMT or sometimes referred to as ‘Magical Money Tree’), and the Federal Reserve bank (central bank) pre-emptive bail outs of banks and non-banks underway and whether the latter will succeed in generating an economic recovery from the current deep Coronaviral impacted US economy. What follows are some of my quick reflections and commentary on these topics. My views on monetary policy are somewhat summarized by the argument that in the current era of finance capitalism dominance, monetary policy has been the first and foremost choice of capitalist governments and policymakers.