
Modern monetary theory: the rise of economists who say government de (cont) - whack
https://theconversation.com/modern-monetary-theory-the-rise-of-economists-who-say-huge-government-debt-is-not-a-problem-141495
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rossdavidh
I know this sounds boring and old-fashioned, but whether government debt is a
good or a bad thing, would depend a lot on what it was doing with the money it
borrowed. If it spent it on repairing aging dams that were about to burst,
bridges that needed repairs, and roads that have become unable to bear the
traffic they are meant to, they could be a very wise decision. If they are
used to build dams where none are needed, bridges to nowhere, and re-pave
roads that are already fine, then they are not good. It is not so much the
amount of debt that matters (for a sovereign state like the UK that is able to
borrow in its own currency), but what the money (and thus the labor and real
materials the money is used to purchase) is used to do.

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alpineidyll3
No government in power now has shown any desire to allow inflation, and in the
absence of inflation central bank spending only benefits the wealthy basically
by tautology. Even proponents would admit it must without taxing the wealthy.

Proponents of mmt imagine a "new deal 2.0" what they will get is even worse
inequality, followed by social upheaval.

Virtually all of the balance sheet expansion the us fed has engaged in since
qe has only enriched bondholders.

Mmt is nothing but an excuse for easy policies. It's like a slim fast shake
treatment for heart disease and I can't wait for it to go away.

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csense
> The only limit, according to this view, is if inflation starts to rise, in
> which case the solution is to increase taxes.

But that's the problem. Spend too much, and you'll be paying for it later,
with either ruinous inflation or ruinous taxes.

