Well that title is blunt, isn’t it? I like blunt. That’s why I chose it. As I always say, blunt cuts through bullshit. It’s my bet that it is sure to cause irritation for those persons who play immature games of semantics with the word ’fund’. Good. Look, we all know what people mean when they say, ‘Federal taxes don’t fund federal spending’; they mean, ‘The federal government does not require an income, and so, it does not spend the proceeds from federal tax collections’. Some people simply wish to confuse others by playing a game of semantics over the word ‘fund’.
What follows is Part 6, the final installment of a direct rebuttal to the original Powell Memo, frequently using Powell’s own words, which instead offers a progressive plan to take back the country from the ravages the corporate oligarchy has committed on the American people and restore the freedoms and protections to which we are entitled. Read Part 1, Part 2, Part 3, Part 4, and Part 5.
Chuck E. Cheese is a great analogy for the fiscal policy of the federal government because they are both “currency” issuers. The reason why this is all so important to understand is that MMT has far ranging implications for the progressive movement not just nationally but globally. Appreciating the reality MMT represents is a fundamental change in how we approach our government and its spending. It eliminates the debate over HOW we’re going to “pay” for something, and lets us ask if program X will improve our lives, then why is the government refusing to spend when it has no constraint? That will drive this revolution beyond complaining about the state of the world to demanding that the government spend in support of the public purpose.
Anti-austerity is a word, of which, culturally and socially speaking, perhaps the Spartans wouldn’t have approved of. We can accept that. It was a Laconian thing. We wouldn’t understand anyway. However, it is also a word, economically-speaking, that many orthodox economists and politicians understand but outright refuse to accept. It’s a neoliberal thing. We cannot and must not accept that.
Someone asked me - no - I lied - someone told me - MMT is not relevant to the average voter, the average American - it is irrelevant - then proceeded to tell me that Paul Krugman said it was a joke. He could not be less accurate but his critique is relevant because many do not pay attention and yet they wonder why they march in place.
The concept that the US government has no money of its own by design and must tax and borrow to fund its spending is an imaginary concept.