The Week - Why Modern Monetary Theory is an Unserious Idea for an Unserious Time
Epsilon Theory: Modern Monetary Theory or: How I Learned to Stop Worrying and Love the National Debt
It makes us feel better about all the bad stuff we’ve done with money and debt for the political efficacy of Team Elite.
And all the bad stuff we’re going to do.
Eyes on the ball here - we've gone from "70% marginal tax rate" to "Laffer Curve" in the space of a week. There's a fair amount of messaging going on and the message is fundamentally "people who want big social programs are delusional."
The note under the note, however, is interesting. We're experiencing a big shift in the thinking on "how money works." At the end of the day, economics is a ledger we all choose to believe in. This whole "capitalize the gains, socialize the losses" approach to capitalism might be running aground.
Hold onto your butts.
Wait, help me out here - wasn’t Piketty arguing for something like that marginal tax rate? Did he not take the behavioral consequences into account or was it something fundamentally different? It’s not like a marginal tax rate on labor is the only way to get money from the rich.
And what exactly about MMT makes you think it will fundamentally alter things, instead of being just another ineffective / destructive approach like QE?