America's current "national debt" is tallied to be $21.5 trillion. When politicians and economic pundits talk (worry, fret, wring their hands, gnash their teeth) about this "debt" they implicitly assume—along with their listeners, readers, and potential voters—that this fantastic sum will eventually have to be paid back. That's what happens with debts, right? Someone calls them due!
... my message was not getting through. Telling people point blank that taxes do not fund spending always leads to a change in subject. It always leads away from what is so very important about MMT. Which is that MMT describes how macroeconomics operates in the modern world.
When we talk about MMT, we almost invariably hear at least one person who argues that their tax money does in fact fund federal spending, and that we're crazy for peddling this nonsense. The conversation then turns to the 2018 national defense budget. That's a good place for it to go.
You must be diligent in order to get the message out about #MMT
My purpose here is to spur the development and refinement of the conversation already going on about how to better disseminate knowledge and acceptance of MMT.
While Flint’s problems surely run deeper than its lack of local tax revenue, it’s difficult to overstate what a substantial injection of capital could do for the city. The question: where does Flint “find” the money? Enter Modern Monetary Theory.
What we must learn from Pasteur's example is the bravery to wield truth as a weapon against well-established lies, and the fortitude to persevere, even when the odds are stacked against us. For no matter how high the odds are stacked, the stakes are even higher.
The mainstream voices—the economists and journalists and political leaders—thrive on this question of how to divvy up the pot of “money” that America, by some inexplicable process, has been allocated to have. Staking out positions in this allocation argument is their career and sustenance. To take their argument away (by suggesting the pot of “money” is, in fact, expandable—as needed—by the direct sovereign spending of fiat-currency) threatens to leave them marginalized and irrelevant; even worse: possibly unemployed?
It is clear we are in the middle of a communication breakdown in this country and our road forward must be led by creative people with innovative ideas, not career politicians with regressive austerity measures. Understanding Modern Monetary Theory is how we can achieve this, and communicating that understanding is key.
It's not about entitlement, it's about survival.
Modern Monetary Theory (MMT) represents a lens from which to view the various operational levers within the macroeconomy. It is simply the observable facts about how the monetary system works. Not "believing in" MMT is, in essence, denying reality.
The importance of this is not simply that the U.S. government no longer must keep enough gold in its vaults to back up its money supply. The importance lies in a profound conceptual shift about what money is—and how a modern, democratic society can use that new understanding to address public needs and pursue collective goals.
So, she can see that if she advocates for the spending needed to solve our problems, then she may be stepping into a mine field right off the bat. How should she cope with that situation, which she is sure to hit soon if she hasn’t already gotten there? Well here is where MMT can help her and other progressive candidates.
In 2018, for the sake of your family, your friends’ families and for every American family facing financial hardships, make your new New Year’s resolution to learn about the reality of our nation’s economic system, to learn MMT, and when you’ve done that, teach someone else what you’ve learned. Together we can spread this knowledge and save lives by answering that age-old progressive agenda-killing question: ‘how are we going to pay for it?’
I woke today with an inner rage that can only come from experience and knowledge. This winter, hundreds of thousands of Americans will be on the streets homeless, without food, shelter or heat. Families will break up from financial distress. Kids will be dealing with life insecurities, bullies who capitalize on weakness and observers will judge "misbehavior" versus dig deeper for the real root causes. 45,000 suicides from joblessness will occur and many more will unsuccessfully try to take their lives in despair. Millions will suffer from food insecurity or poor nutrition because of financial destitution, austerity and Calvinism. Millions will die from pollution and the environmental destruction from contaminated drinking water. Airborne illnesses from air pollution will kill or severely damage their lungs as well. Hundreds of thousands of minorities, vulnerable from years of systemic and envrionmental racism will die attempting to survive by living in alternative economies from unregulated prostitution to slinging drugs and gang related violence. Many women will suffer the effects of rape and be forced to self-medicate, have unsafe, unregulated procedures and even commit suicide from a lack of available, affordable services. Millions of individuals suffering from mental illness will go untreated, commit suicide, commit murders, destroy families and end up in jail as opposed to a medical facility... All because the people are more worried about the tone of activists sharing the econonic truths to fix all of the above... tone policing. And ultimately because of austerity. Cutting federal spending. Tax cuts for the rich and not Medicare for All, student loan forgiveness, free college for all, a Federal Job Guarantee, Green Energy and an overall dereliction of duty to serve the people by our "elected representatives". Voters are easily distracted and politicians gleeful of our short memories. #LearnMMT #FuckAusterity #GetSmart #RiggedElections #ShortSightedness #DNC #TaxScamBill
MMT, aka Modern Monetary Theory, however poorly the name works for you, is not a system that has to be implemented someday. It is a perfectly accurate description of how our currency works. It is a myth-busting destroyer of propaganda and myths. The establishment and the activist alike speak in lies from the tablecloth... MMT destroys those arguments by shining a light on the functional realities.
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’.