EconoMonitor

Great Leap Forward

Is It Time for MMT To Become Mainstream to Save Us from the Second Global Financial Crisis of the Millennium?

Some of you will remember that MMT got its first huge mainstream exposure through a Washington Post article written by Dylan Matthews: http://www.washingtonpost.com/business/modern-monetary-theory-is-an-unconventional-take-on-economic-strategy/2012/02/15/gIQAR8uPMR_story.html

He’s just written another excellent story, this time about Stephanie Kelton going to Washington:

http://www.vox.com/2015/1/10/7521819/sanders-mmt-kelton?utm_medium=social&utm_source=twitter&utm_campaign=vox&utm_content=share:article:top

Finally, there might be an alternative to the deficit hawk and timid deficit dove lovefest!

As Dylan says: “For years, the main disagreement between Democratic and Republican budget negotiators was about how to balance the budget — what to cut, what to tax, how fast to implement it — but not whether to balance it. Even most liberal economists agree that, in the medium-run, it’s better to have less government debt rather than more. Kelton denies that premise. She thinks that, in many cases, government surpluses are actively destructive and balancing the budget is very dangerous. For example, Kelton thinks the Clinton surpluses are nothing to brag about and they actually inflicted economic damage lasting over a decade.”

Yep, there’s no daylight between a Bush or a Clinton.

Isn’t it pretty funny that if the mainstream Dems get their way, we will get a Bush or a Clinton this time around (again!). Yep, it will be a legacy hire either way, and it makes no difference which one wins–both will do their damnest to limit budget deficits even as the economy falls into the second Global Financial Crisis of this millennium.

There’s now a choice, folks. Just Say No!

 

One Response to “Is It Time for MMT To Become Mainstream to Save Us from the Second Global Financial Crisis of the Millennium?”

Aegean1972January 15th, 2015 at 8:38 am

I think a 2nd global financial crisis is inevitable. Its already happening in my humble opinion. Or to put it in a different way, it never stopped happening since the beginning of it in 2008. And the more they dont do anything about it, the worse things will get and the longer it will take see a recovery. This crisis is very complicated (economic, political, social, geopolitical, atc) and its international. In a nutshell (and without wanting to sound pesimistic) its a mess.