This post is for everyone who shares my dismay at the economic distress our country is undergoing and the unnecessary suffering of so many of our fellow citizens.
We need to change the economic debate we are having in our country. We need a economics television talk show that will take as its point of view that any approach to economics that does not bring about a better way of life for the majority of its citizens is a failure, and must be rejected. I propose to launch an economics TV talk show from the point of view of Modern Monetary Theory. I would serve as producer/director, Joe Firestone, the man who popularized the platinum coin solution, would host, and Warren Mosler, the father of Modern Monetary Theory would be the star attraction. Guests would include people like Mike Norman, Stephanie Kelton, Marshall Auerback, and other leading lights of MMT along with economics experts like Yves Smith, author of Econned.
Ideally, this show would run on a local TV or radio station. Thus we would have an opportunity to make our case to the nation’s policy makers. We would want the shows archived on a website, so that people outside the Potomac area would have access to it.
Modern Monetary Theory is a school of economics asserting that:
– The currency itself is a simple public monopoly;
– Governments provision themselves by creating taxes that cause people to sell real goods and services to get the funds they need to pay their taxes and then by purchasing the goods and services they desire with their otherwise worthless currencies;
– Since the economy needs the government’s money to pay its taxes, the value of the currency depends on the prices govt. pays when it spends;
– For a given size of government, unemployment is the evidence that the government is either overtaxing the economy, or spending too little to compensate for any residual desire to save;
– Governments with fiat currencies create money at will when they spend, and destroy money when taxes are paid, further indicating that taxes function to regulate the economy, and not to collect revenue per se;
– The currency is a governmental tool that in a democracy is created and maintained to promote public purpose, and to provide for the general welfare.
From an MMT point of view, the entire debate about the federal budget and finance is entirely misguided, and predicated upon a series of false beliefs, the greatest fallacy being the the idea that some purpose would be served by a balanced budget. On the contrary, all funds ultimately come from the public purse. One is reminded of the old practice of treating sick people by bleeding them. Not only does it not help; it is likely to bring about their death. The purpose of our proposed talk show would be to expose the fallacies of austerity economics story by story, week by week.
Send word to firstname.lastname@example.org if you would like to know more.