We are continually told that Modern Monetary Theory changes everything. As governments can just keep printing money therefore governments will never run out of money. We can have everything!
Of course, this just ignores the fact that money is the way we keep score, not the thing – or things – itself that we want. More money doesn’t change the number of goods and services out there, it just changes the number of munnies we need to be able to get them. Inflation that is. To which the MMTers – such as L Randall Wray, The Sage of Ely and so on – tell us that that’s easy enough, we just increase taxes to cancel that extra money, inflation is gone at the barrel of a gun.
The problem with this being:
Wray and other theorists (he does at least try to think, unlike Tlaib) tell us that there’s a solution to this too. As government just makes money by printing it, if there’s inflation, then they can tax it back. This destroys the money and kills the inflation. It’s quite true too, but more thought is needed here.
For that end result, how different is it from what we’re trying to escape? We end up in a high-tax, big-government world. Sure, now the tax is supposed to kill inflation from the money government is making, but it’s still a high-tax world with lots of government. The end result being no different from that old Democrat idea of taxing the heck out of everything first, then getting government to spend the money. Or even the Republican variant: don’t tax, spend and borrow instead, which then has to be paid back through taxation.
The reason we try to escape that world being, of course, the performance of government. The latest nuance is that the Centers for Disease Control and Prevention’s coronavirus tests didn’t work, the ones the Food and Drug Administration said everyone must use were actually contaminated with the virus themselves. Or if that’s a bit detailed, just try looking at any of the housing the Department of Housing and Urban Development has built over the years. Then think what it would be like if everything was that way, done the government way.
MMT is, in reality, just another way for the statists to get to their end goal, more government. And:
And anyone with any experience of government cheese knows we won’t enjoy more government.