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Bruce Currie — How can America pay for things the people want? With ease.

Summary:
Good summary article on MMT.Here's a teaser: With a sovereign currency, what this nation chooses to spend money on should be removed from any discussion of how a program should be paid for. Congress can authorize such spending at any time. Inflation is never a concern, so long as sufficient goods and services are available to purchase with the money spent into the economy.In fact, government spending that invests in new infrastructure, more efficient buildings and transportation, and in better health care for all, has a multiplier effect that spending on war does not. The benefits of such spending are concrete and tangible to all of us, because they ripple through the economy in ways that spending on wars cannot.Much of this spending is on things that the private sector will not or cannot

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Good summary article on MMT.

Here's a teaser:

With a sovereign currency, what this nation chooses to spend money on should be removed from any discussion of how a program should be paid for. Congress can authorize such spending at any time. Inflation is never a concern, so long as sufficient goods and services are available to purchase with the money spent into the economy.

In fact, government spending that invests in new infrastructure, more efficient buildings and transportation, and in better health care for all, has a multiplier effect that spending on war does not. The benefits of such spending are concrete and tangible to all of us, because they ripple through the economy in ways that spending on wars cannot.

Much of this spending is on things that the private sector will not or cannot do, because it’s on things that aren’t profitable – like roads and mass transit, or retrofitting buildings for greater energy efficiency. The return on investment may be too risky, or too many years away.

And thanks to “shareholder value theory” popularized by Milton Friedman, U.S. corporations have become risk-averse – more interested in stock market manipulations than in long-term investment.

Contrary to critics, government spending doesn’t drive out private spending. Instead, such spending creates opportunities for new investment by the private sector.
 Recommended reading. Pass it on.

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How can America pay for things the people want? With ease.

Bruce Currie
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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