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Funny Money

The MMT Lens with Special Guest Stephanie Kelton

Apr 28, 2023
Professor Stephanie Kelton joins Funny Money hosts Ka and Andrés to discuss Modern Monetary Theory (MMT) and its implications on government spending, debt ceiling, social security, and inflation. They explore the concept of MMT and its accurate description of the monetary system, discuss the debt ceiling crisis and its manipulation as a political tool, and highlight the influence of power and lobbyists on economic decision-making.
01:17:47

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Quick takeaways

  • Government deficits contribute to financial surpluses in other parts of the economy.
  • The debt ceiling crisis is political theater that creates unnecessary uncertainty.

Deep dives

Understanding Modern Monetary Theory

Modern Monetary Theory (MMT) challenges conventional notions of fiscal policy and government budgets by introducing the idea that the government doesn't function like a household. The government creates and designates currency, allowing it to spend without the need to borrow money like a household would. This perspective highlights that government deficits actually contribute to financial surpluses in other parts of the economy. Additionally, it emphasizes that the national debt is not equivalent to personal debt, but rather a cumulative record of government spending that does not need to be 'paid back' in the same sense.

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