That’s not what MMT says.
In fact, they specifically says that you have to manage inflation with fiscal policy, by “taxing money out of the economy” or cut spending.
In fact, they specifically says that you have to manage inflation with fiscal policy, by “taxing money out of the economy” or cut spending.
Neither of which are even close to occurring in the United States.
Politicians are going to politician. Just look at the “dynamic scoring” models republicans apply to tax cuts. It isn’t the job of economic theory to ideologically reign in politicians, it’s job is to model to world accurately. I haven’t read enough into MMT to actually assess that for myself, but it’s ridiculous to assert that it’s flat out wrong because politicians run deficits (which they have done for decades before MMT even came into existence)
In fact, as long as we are at full employment deficits should be stabilized or cut.
In the end, it’s advocating utilizing the economic resources you ah e at your disposal, rather than letting them languish.
Also, note that the us is hovering at around 120% debt/gdp, a number that has declined since Q2 of 2020.
This is actually an accurate description of the whole of economics, irrespective of MMT.
At the end of the day they seem very much rooted in the question of wether there are productive economic assets that can be utilized. Yes => the government should spend money to use them, don’t worry about deficits, No => either spend less (create less demand for resources) or tax more (remove demand from somewhere else). In the end, there’s no reason assets should be left to no productive use, by their estimation.