WeWork, and Can the Government Really Print as Much Money as It Wants?
Feb 20, 2019
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Debating the sustainability of WeWork's success and exploring Modern Monetary Theory. Also, discussing effective government spending, heartwarming YouTube videos, and the experience of using a high-quality chef's knife.
WeWork's success hinges on disruptive business models and long-term leasing strategies, contrasting with traditional norms and sparking societal shifts in workplace trends.
Modern Monetary Theory challenges conventional economic views, advocating for government spending without debt concerns but raising issues of inflation and the need for institutional safeguards.
Deep dives
Innovative Business Models and Valuations in Modern Startups
The podcast delves into the success of modern startups like WeWork, highlighting their unique business models despite financial challenges. WeWork's focus on long-term leasing and societal shifts towards inspiring workplaces disrupted traditional norms. Although its valuation far exceeds realistic measures compared to similar companies like Regus, the role of SoftBank's massive investments distorting valuations is critiqued.
Exploring Modern Monetary Theory
The discussion shifts to Modern Monetary Theory (MMT), which challenges traditional economic views on borrowing and spending. MMT suggests that as long as the government borrows in its currency, it can print money to pay back debts. While MMT poses unconventional ideas in managing deficits and spending, concerns arise over issues like inflation, overspending, and the need for institutional support to avoid economic instability.
Reimagining Fiscal Policy and Economic Investment
The podcast debates the feasibility and implications of MMT in reshaping fiscal policies and investment decisions. While MMT advocates for focusing on productive spending instead of financing constraints, challenges emerge in institutional frameworks and practical tax adjustments to prevent inflationary risks. The conversation also scrutinizes the potential benefits and pitfalls of shifting perspectives on government spending.
The Significance of Data Analysis and Social Surveys
The episode concludes with recommendations, including the use of data tools like the General Social Survey Data Explorer for insightful analyses of societal trends over decades. By exploring survey data in a visually appealing manner, individuals can gain valuable insights into social dynamics, attitudes, and changes over time, offering a unique perspective on understanding complex social issues and trends.
Youngme Moon, Felix Oberholzer-Gee, and Mihir Desai discuss whether WeWork’s success is sustainable. Plus, can the government really spend as much money as it wants without worrying about deficits? What in the world is Modern Monetary Theory and does it actually make sense?
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You can email your comments and ideas for future episodes to: harvardafterhours@gmail.com. You can follow Youngme and Mihir on Twitter at: @YoungmeMoon and @DesaiMihirA.