MMT Talking Points

This is a page of talking points about MMT.  MMT can be difficult to explain to people, so here are someways to talk about the different ideas of MMT in an easy to understand fashion.  If I can identify a person or person who said it first, I will credit them.

Government Spending, Printing Money:  “All government spending is printing money. And all taxation and spending reductions are ‘un-printing’ money.”  Warren Mosler

Taxes do not raise revenue:  MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.  Warren Mosler 

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  1. Richard Huntzinger
    June 21, 2011 at 2:46 pm

    How does federal debt control, congressional debt limit propositions, fit into the MMT system? Austerity, high interest rates and unemployment on the one hand, default, hyper-inflation and high unemployment on the other. Bernanke and the troika, Geithner, Holder and Obama, as executives in charge.

    I’m an old retired guy who just discovered MMT and related arguments a couple of days ago, and want to learn more about it.

    • TC
      June 21, 2011 at 2:55 pm

      Hmm. Lots to say about this.

      The biggest thing to know – in my opinion – is the U.S. government cannot go broke. We will only ever default on our debt through a political decision. It will never be an economic or financial decision.

      This has gigantic consequences. It means that our two concerns should be employment and inflation. Nothing else matters. We cannot control human innovation, we cannot control economic growth. But our decisions will have an impact on the level of employment, and the level of inflation.

      So we should base our choices those two factors alone.

      This has been my biggest takeaway from MMT.

      I personally feel that if we cannot see the inflation, we shouldn’t worry about it. I am also quite confident we cannot do anything about energy inflation through fed policy. You can look through my site about the hyperinflation hoax if you like, or for posts on energy inflation.

      The rest of it is far and away longer to explain than I have space for here!

      Also, remember MMT does not have every answer. It just states some basic facts about the economy – and that makes the economy easier to understand.

  2. August 31, 2011 at 9:39 am

    A partial list of my MMT Talking Points…

    Government spending adds money to the economy.

    Taxation removes money from the economy.

    Bank lending adds money to the economy.

    Re-paying bank loans removes money from the economy.

    Interest on bank loans re-distributes money in the economy to the banking sector.

    Interest on bank loans is provided by deficit spending.

    Bank lending adds no net money to the economy.

    Deficit spending adds net money to the economy.

    Deficit spending is the only way to add net money to the economy.

    Since WWII there has been $14.3 Trillion in deficit spending as compared to $279.5 Trillion in GDP.

    The National Debt is exactly equal to National Savings plus all dollars held by foreign entities.

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