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.
23:11
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Quick takeaways
- Modern Monetary Theory suggests governments can create money to fund public programs without constraints, challenging traditional economic policies.
- Critics emphasize that MMT could undermine productivity and innovation, potentially leading to inflation and excessive government intervention in the economy.
Deep dives
Understanding Modern Monetary Theory (MMT)
Modern Monetary Theory (MMT) asserts that a sovereign government that issues its own fiat currency can never run out of money, as it can create money to fund public programs without needing tax revenue or borrowing. Critics of MMT argue that this approach is fundamentally flawed, suggesting that it lacks logical consistency across different economic scales. For example, the idea that individuals could simply print money at home underscores the absurdity of MMT when applied in a real-world context. Ultimately, the main concern is that while MMT posits that governments can solve economic issues through money creation, this could lead to a lack of productivity and innovation.
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