{"id":44650,"date":"2019-03-21T19:53:21","date_gmt":"2019-03-22T00:53:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44650"},"modified":"2019-03-21T19:53:24","modified_gmt":"2019-03-22T00:53:24","slug":"exposing-the-myth-of-mmt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44650","title":{"rendered":"Exposing the Myth of MMT"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dweaay7e22a7h.cloudfront.net\/wp-content_3\/uploads\/2014\/10\/Money_7-650x360.jpg\" alt=\"Exposing the Myth of MMT\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/dailyreckoning.com\/exposing-the-myth-of-mmt\/\">Exposing the Myth of MMT<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yesterday I discussed modern monetary theory (MMT) and how it\u2019s become very popular in Democratic circles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s because it allows for much greater government spending without having to raise everyone\u2019s taxes. And everyday citizens could get behind it because it promises to fund lots of programs without seeing their taxes raised.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What\u2019s not to like?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If MMT were just a fringe idea with a few fringe followers, I wouldn\u2019t waste my time or your time on it. But it\u2019s coming your way, so it is important to understand it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you missed yesterday\u2019s reckoning,&nbsp;<a href=\"https:\/\/dailyreckoning.com\/a-recipe-for-massive-government-spending\/?r=DR\"><strong>go here<\/strong><\/a>&nbsp;for a refresher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The people who are thinking about MMT, who understand it at least in some superficial way, are the people who are driving the policy debate or running for president.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many mainstream economists and money managers have attacked MMT, including Fed Chairman Jay Powell, Larry Summers, Paul Krugman, Kenneth Rogoff, Larry Fink, Jeff Gundlach, Jamie Dimon and Ray Dalio.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But much of their criticism is unjustified (see below for more). I\u2019m an opponent of MMT \u2014 but for different reasons. As far as I know, I\u2019m the only analyst who\u2019s raised the objections I list below.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, I\u2019m going to show you what I believe to be the real problem with MMT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Again, it\u2019s easy to see why so many politicians on the Democratic side would be such big supporters of MMT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some or all of them have come out in support of the following programs:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Free college tuition, student loan forgiveness, Medicare for all, free child care, universal basic income (UBI) and a Green New Deal. Some support them all.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Needless to say, that\u2019s going to cost a lot of money. Just consider the Green New Deal alone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Exposing the Myth of MMT Yesterday I discussed modern monetary theory (MMT) and how it\u2019s become very popular in Democratic circles. That\u2019s because it allows for much greater government spending without having to raise everyone\u2019s taxes. And everyday citizens could get behind it because it promises to fund lots of programs without seeing their taxes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11023,13599,24043,1615],"class_list":["post-44650","post","type-post","status-publish","format-standard","hentry","category-economics","tag-daily-reckoning","tag-james-rickards","tag-mmt","tag-spending"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44650"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44650\/revisions"}],"predecessor-version":[{"id":44651,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44650\/revisions\/44651"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}