As we know Modern Monetary Theory is the latest great new plan from the left. Governments aren’t constrained by not having any money to do good things with, they can just make it and spend it, Yippeee!
And then we’ve this cautionary little tale about how the end game plays out. There’re more than just the one of those cautionary tales of course, Zimbabwe and Venezuela come to mind. Or perhaps Argentina:
Nestor Kirchner’s appetite for cash gifts — but not in Argentine currency — is now legendary. “He would kick anyone who brought him bags full of pesos rather than dollars or euros,” said Pablo Werning, an economist.
Yes of course this is some corrupt Latin American caudillo, not an upstanding Anglo politician who would never, ever, dream of doing such a thing. Hillary didn’t, as we know, sell State Department access for donations to the Clinton Foundation, Tony Blair hasn’t ever flogged off his position as ex-PM to dodgy foreigners on consultancy contracts. We are blessed by having a politics in which such things simply do not happen.
Thus MMT will work for us, right?