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It is more than a thought game if it has been the reality. MMT is description, not policy.
Massive central funding has taken place due to central gov't counters to the Pandemic. Now that the Pandemic is winding down, so has the new money creation.
Who is asking for excruciating taxes?
1. MMT hasn't been reality anywhere.
2. The several economists pushing MMT are all extreme hard left types calling for things like worldwide taxing authorities, 80% marginal rates and the like.
3. It is important to note that some MMTers talk about leveraging so much deficit spending, several trillion per month forever, that over time taxes may be lowered or eliminated or used as a means to slow inflation.
It's all so dumb it's just not worth wasting much time over. The OP's question is a good one but easy to answer as MMT won't see the light of day.
2. The several economists pushing MMT are all extreme hard left types calling for things like worldwide taxing authorities, 80% marginal rates and the like.
3. It is important to note that some MMTers talk about leveraging so much deficit spending, several trillion per month forever, that over time taxes may be lowered or eliminated or used as a means to slow inflation.
It's all so dumb it's just not worth wasting much time over. The OP's question is a good one but easy to answer as MMT won't see the light of day.
I'm not sure who you are referring to. MMT shows why more taxes are not necessarily needed to fund central gov't operations.
I'm not sure who you are referring to. MMT shows why more taxes are not necessarily needed to fund central gov't operations.
What really matters is MMTers, Bill Mitchell himself included, argue for constantly variable tax rates to deal with MMT's inflation guarantee. It's way beyond this forum but using tax policy as a brake against inflation is just a dream as the economy would react too slowly - exactly as pure monetary controls are too slow.
As most MMTers are very far left they, including Mitchell, argue for taxation as means to drive redistribution, squelch out of favor behaviors/consumption dissuasion etc.
It's really tough to overstate how far left these people are.
___________
In case anyone does not know Bill Mitchell is an Australian economist/professor who repackaged an old and defunct economic philosophy called - Chartalism - as the backbone of MMT.
What really matters is MMTers, Bill Mitchell himself included, argue for constantly variable tax rates to deal with MMT's inflation guarantee. It's way beyond this forum but using tax policy as a break against inflation is just a dream as the economy would react too slowly - exactly as pure monetary controls are too slow.
As most MMTers are very far left they, including Mitchell, argue for taxation as means to drive redistribution, squelch out of favor behaviors/consumption dissuasion etc.
It's really tough to overstate how far left these people are.
___________
In case anyone does not know Bill Mitchell is an Australian economist/professor who repackaged an old and defunct economic philosophy called - Chartalism - as the backbone of MMT.
Taxing to affect inflation is way too politically complex and not timely enough.
Taxing to affect inflation is way too politically complex and not timely enough.
I agree and that's also reason number 311 why MMT is just hogwash.
I honestly don't understand why more "mainstream" economists don't call out the MMT cabal as the frauds they are. Just as Ludwig von Misses on the other side.......MMTers are hardcore philosophizing political beings posing as economists.
IMO until Mitchell, Kelton etc. write an in-depth and comprehensive paper explaining MTT in detail it's a joke without so much as a punchline.
We can grow an economy by increasing the amount of overall cash available to spend.
That is not how it works, but thanks for differently twisting it.
Quote:
Originally Posted by Sunbiz1
For years now, I've been hearing and reading traditional economists warning of mass inflation; and inevitable market crashes due to printing too much fiat currency.
And, none of those things have happened, so perhaps you might want to consider getting info from elsewhere.
Quote:
Originally Posted by Sunbiz1
So I guess my second question would be, without any real labor or value; how can this seemingly utopian policy be sustainable.
It's been sustainable for more than a century. How much more evidence do you want?
Quote:
Originally Posted by Sunbiz1
Or did they finally realize it was unsustainable?, hence recent slowing the economy via rate hikes.
Rate hikes have nothing to do with sustainability.
Why don't you tell us about the economics of the Ming Dynasty, specifically, what happened and why.
If you can't do something as simple as that, then you'll never grasp economics.
I honestly don't understand why more "mainstream" economists don't call out the MMT cabal as the frauds they are.
I don't think that is a mystery. It comes down to 2 things.
First, in order to argue against MMT, the MMTers must first articulate a cohesive set of mathematical models that are subject to peer-review and academic scrutiny. No such articulation exists -- on purpose -- so no academic refutation can exist. You're punching at wisps of smoke.
Second, ANY time an assistant or associate professor who aspires to tenure takes a position that is critical (in the academic sense) of the progressive left, they are literally betting their career. Far better to remain silent than to speak out and be cancelled & blacklisted.
That is not how it works, but thanks for differently twisting it.
I should have added the word artificial to growth.
And, none of those things have happened, so perhaps you might want to consider getting info from elsewhere.
Meh, removing essential items from the inflation index makes their numbers blatantly false.
It's been sustainable for more than a century. How much more evidence do you want?
Middle class is becoming extinct; sustainable for whom?
Earned income is generally taxed at higher rates than capital gains.
Rate hikes have nothing to do with sustainability.
Raise them too high, and certain markets become unsustainable; people cannot afford the rates/payments
Why don't you tell us about the economics of the Ming Dynasty, specifically, what happened and why.
I once taught world history, currency mostly silver; due to hyperinflation and massive counterfeiting of paper. They were pretty self-sufficient; we are anything but.
If you can't do something as simple as that, then you'll never grasp economics.
Did that make you feel superior?
I should have added the word artificial to growth.
Meh, removing essential items from the inflation index makes their numbers blatantly false.
Middle class is becoming extinct; sustainable for whom?
Earned income is generally taxed at higher rates than capital gains.
Raise them too high, and certain markets become unsustainable; people cannot afford the rates/payments
I once taught world history, currency mostly silver; due to hyperinflation and massive counterfeiting of paper. They were pretty self-sufficient; we are anything but.
Did that make you feel superior?
Adding cash will not grow the economy unless you count inflation as growth - nothing artificial about that.
Every inflation index shows an increase - pick one that includes what you think is missing it will still show about the same increases.
The middle class is not going away but is shrinking - more are moving up than down though - the upper class is what is growing.
Earned income is already taxed before investing and the investments are what feeds jobs and economic growth, the way to kill jobs is to increase taxes on what grows jobs.
Rate hikes are to curb inflation, rates would be even higher if inflation is not tamped down.
The fact is that currency is hard to counterfeit nowadays so your history is not an issue today - also most currency is on a ledger, only a small part is physical currency (bills).
While I haven't studied this topic in-depth, and therefore welcome being educated; in a nutshell is this how it operates?;
We can grow an economy by increasing the amount of overall cash available to spend.
For years now, I've been hearing and reading traditional economists warning of mass inflation; and inevitable market crashes due to printing too much fiat currency.
So I guess my second question would be, without any real labor or value; how can this seemingly utopian policy be sustainable. Or did they finally realize it was unsustainable?, hence recent slowing the economy via rate hikes.
TY in advance for all of your input.
MMT amounts to the belief that a country can simply print money to solve all its problems without consequence. Given the high inflation we have had this year, I do not see how anyone can say with a straight face that the money printing is “harmless”...
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