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Warren Mosler’s unorthodox take on fiscal policy is catching on with progressive Democrats. A superb article about Warren Mosler. Did you know that Bill Mitchell developed MMT independently of Warren Mosler? Warren Mosler has a heart! He ran a hedge fund, lives in a Caribbean tax haven, and loves fast cars and yachts—not obvious qualifications for a left-wing guru. But that’s what Warren Mosler is rapidly becoming. Its main argument is that governments with their own currencies can’t go broke. They have more room to spend than is usually supposed and don’t need to collect taxes (or even borrow) to pay for it. One thing they can, and should, spend money on is a jobs guarantee—offering work to anyone who wants it. Conventional economics teaches that a government
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Warren Mosler’s unorthodox take on fiscal policy is catching on with progressive Democrats. A superb article about Warren Mosler. Did you know that Bill Mitchell developed MMT independently of Warren Mosler? Warren Mosler has a heart! He ran a hedge fund, lives in a Caribbean tax haven, and loves fast cars and yachts—not obvious qualifications for a left-wing guru. But that’s what Warren Mosler is rapidly becoming. Its main argument is that governments with their own currencies can’t go broke. They have more room to spend than is usually supposed and don’t need to collect taxes (or even borrow) to pay for it. One thing they can, and should, spend money on is a jobs guarantee—offering work to anyone who wants it. Conventional economics teaches that a government
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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Warren Mosler’s unorthodox take on fiscal policy is catching on with progressive Democrats.
A superb article about Warren Mosler. Did you know that Bill Mitchell developed MMT independently of Warren Mosler? Warren Mosler has a heart!
He ran a hedge fund, lives in a Caribbean tax haven, and loves fast cars and yachts—not obvious qualifications for a left-wing guru. But that’s what Warren Mosler is rapidly becoming.
Its main argument is that governments with their own currencies can’t go broke. They have more room to spend than is usually supposed and don’t need to collect taxes (or even borrow) to pay for it. One thing they can, and should, spend money on is a jobs guarantee—offering work to anyone who wants it.
Conventional economics teaches that a government collects money by taxing and spends part or all of the take. When it spends more than it collects, it has to borrow. Modern Monetary Theory stands this on its head. The government doesn’t need tax dollars to fund spending, because it has a monopoly on creating the money. For almost a half-century, the greenback hasn’t been pegged to gold or anything else. America can’t run out of dollars any more than a department store can run out of its own gift vouchers.
But there's critics -
Critics say Modern Monetary Theory is a recipe for reckless spending and runaway prices. “They’re too optimistic,” says Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington. If the government borrows on the scale advocated by MMTers, he says, “the outcome, I believe, will be inflation. And they don’t believe that.”
“I don’t know anyone who takes them seriously besides themselves,” Gagnon says. But he’s not wholly unsympathetic, agreeing that MMTers were right to dismiss the risk of a sovereign currency-issuing nation like the U.S. suffering a Greek-style fiscal crisis.
Lots more here -
Bloomberg BusinessWeek