Daily Archives: Jun 13, 2020 at 07:55 am EDT

Book Bits | 13 June 2020

The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy
Stephanie Kelton
Review via San Antonio Express-News
We live in extraordinary times. Revolutionary times. The upstarts, originally marginalized and dismissed as irresponsible, suddenly see their radical ideas embraced. The holders of power shift, first imperceptibly and then all at once, to the side of the revolutionaries in the streets.
I refer, of course, to the takeover of the Washington establishment and consensus by adherents of the Modern Monetary Theory, aka MMT, of economics.
A quick refresher: MMT begins with the principle that governments that control and create their own currency, like the United States, never have to worry about defaulting on excessive government debt. Taxes do not have to match spending now. Or ever. Borrowing and money creation can always fill the gap between spending and taxation.
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