According to MMT, we don't need taxes to finance our spending nor do we need to sell government debt. We are freed of the need to 'live within our means.' Certainly if that's true who'd object? Probably some would as they don't like things to be too good-most of those types are in the Republican party. It's something to do with our Puritan past.
Still even according to Mosler this has only been true since 1971-my year of birth, incidentally.
Only fiat money is free of the need to tax and we've only been a totally fiat money economy since then. Under a fiat money system money is only necessary to make tax payments. So previously we did have to live within our means?
If so, then that was truly a glorious moment in US history-if we went from having to worry if we had enough money to just making decisions purely on a cost-benefit basis on whether we want a bigger military or welfare state-or not.
So is Abba Lerner more right than when he first wrote about FF?
The trouble with MMT-or MM for that matter-is the needed change can only come of the federal level. So if you are a liberal Governor say, you really do have a budget constraint-and have no ability to alter your monetary position. This is similar to how the Euro countries who have given over their monetary policy to the EU find themselves.
From what I understand Mosler spends a lot of his time in Italy these days. I don't know what success he has had yet talking to Europeans-the EU certainly is very slow to learn any new tricks: almost like GOPers.
http://diaryofarepublicanhater.blogspot.com/2015/03/on-dhs-funding-bill-speaker-boehner.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DiaryOfARepublicanHater+%28Diary+of+a+Republican+Hater%29
Still even according to Mosler this has only been true since 1971-my year of birth, incidentally.
Only fiat money is free of the need to tax and we've only been a totally fiat money economy since then. Under a fiat money system money is only necessary to make tax payments. So previously we did have to live within our means?
If so, then that was truly a glorious moment in US history-if we went from having to worry if we had enough money to just making decisions purely on a cost-benefit basis on whether we want a bigger military or welfare state-or not.
So is Abba Lerner more right than when he first wrote about FF?
The trouble with MMT-or MM for that matter-is the needed change can only come of the federal level. So if you are a liberal Governor say, you really do have a budget constraint-and have no ability to alter your monetary position. This is similar to how the Euro countries who have given over their monetary policy to the EU find themselves.
From what I understand Mosler spends a lot of his time in Italy these days. I don't know what success he has had yet talking to Europeans-the EU certainly is very slow to learn any new tricks: almost like GOPers.
http://diaryofarepublicanhater.blogspot.com/2015/03/on-dhs-funding-bill-speaker-boehner.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DiaryOfARepublicanHater+%28Diary+of+a+Republican+Hater%29
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