The Podcast of the Lotus Eaters PREVIEW: Brokenomics | MMT Basics
Apr 22, 2025
Dive into the intriguing world of Modern Monetary Theory, where the belief that governments can print endless money to fund their needs raises eyebrows. Discover how this challenges traditional economics and the typical tax-before-spending mindset. Explore thought-provoking ideas around public service affordability and societal priorities like full employment. Delve into a unique educational experiment that tests unemployment solutions, sparking debates about government spending and its impact on inflation and productivity.
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What Is MMT?
- Modern Monetary Theory (MMT) claims that a government issuing its own fiat currency can never run out of money.
- It argues that money can be created out of thin air to fund programs, with inflation as the main constraint.
MMT's Logical Limitations
- MMT struggles logically and consistently at all scales, unlike productivity-based economics.
- If printing money solved problems, anyone could print currency at home, collapsing work incentives.
MMT Flips Fiscal Order
- MMT views taxes as a government-created liability that people must pay using government-issued currency.
- Government spends first by injecting money, then collects taxes afterward, reversing traditional fiscal views.