"Where there is no vision, the people perish: but he that keepeth the law, happy is he."
-- Proverbs 29:18, King James Bible (KJV)

Thursday, June 11, 2020

Who Needs Cash??!! The Myth of Federal Debt in Modern Monetary Theory, Where Money is a Public Monopoly

Stephanie Kelton writes at the NY Times about
"Our country's myth about federal debt, explained"

in her article
Learn To Love Trillion-Dollar Deficits

where she puts forward the observation of Walter Mosler,
author of the book “Soft Currency Economics”,

in explaining Modern Monetary Theory ("M.M.T.", "MMT"), that

money is a public monopoly:

"Since the U.S. government is the sole issuer of the currency ... it was silly to think of Uncle Sam as needing to get dollars from the rest of us."

Well, yes, absolutely right ... short term.
But long term one still has to deal with:

1) inflation and the problem, for example, of invariable viz. fixed incomes and
2) the necessity of productivity by the economy, regardless of the cash,
because you nevertheless have to have something to buy.

If money were always perfectly "free" as a "give away",
why would anyone work?

So, there still has to be "something" beyond the monetary public monopoly,
because from "nothing" ... comes "nothing".

Hat tip to CaryGEE.