In a 60 Minutes interview, Bernie Sanders struggles to explain how to pay for his programs. He only does so because we haven't learned how money actually works. If we understood this, Bernie could tell the truth and no one would be able to hang him with his own words. It's actually very simple: in order to be able to pay taxes, you need money. For you to get money, the government must first spend currency into existence, which it does when it provisions itself. That currency is then circulated through society and eventually reaches your pocket. Now you can pay taxes. In this video below, Steve Grumbine explains exactly what we need to know:
What makes the world go ‘round? If you believe it is money, you will want to join Real Progressives and special guest, Professor Bill Mitchell, on a Zoom call on Wednesday, January 22nd at 9 pm EST.
Originally written for an Australian audience, this article contains the essential social media readings on Modern Monetary Theory. The links within it are not intended to replace scholarly work which is much more comprehensive and explanatory. This article has previously been published on LinkedIn and Australian Real Progressives.
MMT is now being criticized by economic pundits, particularly from conservative think tanks. This commentary is a rebuttal to one such article.
So long as progressive leaders are allowed to back-pedal on this topic—to try, somehow, to go forward based on the old economics of “commodity” money—little progress can ever be made to address the Big Three challenges that are growing more formidable every day.
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.
It’s a resolution to destroy harmful and outdated economic mindsets.
The transition from trading fish and coconuts to using recognizable modern currency happens quickly, but don’t despair if you’re feeling macroeconomically challenged! This book is written for regular folks who are interested in learning how an economy with a sovereign fiat currency works without having to attend a university program to get there.