@@aaronfreeman5264 Unless the buyer buys the house outright the buyer has a mortgage. A mortgage is a liability for the buyer not an asset. However the mortgage ( in the form of mortgage payments ) does become an asset to the bank that has lent the money. but, Even if the buyer buys outright the house only becomes an asset after the bank that foreclosed on the original mortgage has sold its “asset” to the buyer.
I knew that lady was nuts when she used that "6 or 9" analogy. Someone drew that 6 or 9, so someone knows which one it is, therefore there is an objective right and wrong answer. Subjective morality is poison to ethics. Didn't know subjective economy was a thing.
@@theGefilteFist "Subjective: characteristic of or belonging to reality as perceived rather than as independent of mind". Price is subjective. Value is not. The circumstances in which an item is presented determine if it has value or not. Gold has objectively no value, outside of computer chipping and electronics. Its price is based entirely on subjective assumption rather than objective utility like steel or gasoline.
@@1krani price is literally printed on the price tag (where applicable). Everyone has to decide for themselves if the value they get out of something is worth the price cuz the value only exists in their heads
@@vulgoalias4050 For morality to be subjective, one would have to believe that certain ideas or actions are not inherently hypocritical or self-destructive. Rape springs to mind.
I only had $0.0000008 in an account, but I had a talk with the branch manager, turned the statement upside down, and she agreed and fixed the computer, I'm a multimillionaire now. It's all about communication skills.
@@thedave7760 Assuming you mean who owns how many dollars to whom, the first question has to be how did these dollars come in to existence in the first place? How can a dollar come into existence without somebody owing somebody something? That has to be fully understood before this topic can be rationally discussed.
My Canadian government believes this. Trudeau said “deficits balance themselves”. People actually believe this crazy. Big government folks dream this stuff up! I would love if this was true. No one has to work, no taxes, no problem right…wait if no one is working, where is my car, house, food!! Value is not created by government! Government only consumes value!
Listening to her speak is like listening to a teenager talk about credit cards. "Yeah, you just use the piece of plastic and it pays for whatever you want! its free money!"
@@Richest_Person_in_the_World What do you think happens when we run a deficit? We raise the national debt. If we default on that debt, it can be catastrophic to the entire country.
@@novacorponlinewe don't default on the debt, we print more money, which can or cannot cause inflation depending on where the money goes and what is available and needed in the economy
The Richest Person In The World is right; don't insult teenagers, by comparing them to Kelton. At least a teenager will bear the cost of their debts themselves, or maybe with their parents' help. The government makes 7 billion innocent 3rd parties pay for their handouts to weapons manufacturers and government contractors and bankers.
@@novacorponline If the government loads my account with $1,000,000 yes that is public debt now, but it's my asset as a citizen. Therefore you should rejoice at the realization that the deficit clock is your savings clock
Any system can work if you have vast amounts of oil wealth. Saudi Arabia is a dictatorship or a kingdom depending on your perspective and they have a pretty good quality of life.
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@@danparish1344 Depending on your class. Outsiders don't find it so good.
it used to be working coz china and japan were buying up all the excess bond. create a cheap cost of borrowing and avoiding high inflation. but now no foreign country buying up the excess bond, hence it will cost inflation.
This is 100% correct! Even worse these people believe in Keynesian economics but they only follow the part about deficit spending during a recession. They will never stop spending so we will never have a baseline on the economy to know if we should be running deficits or surpluses.
@@Richest_Person_in_the_World No, a fiscal surplus can be used to pay down the national debt. But you are correct if we didn't have 35 trillion in debt.
@@Richest_Person_in_the_World What you say is undoubtedly true and bad for you, but this is supposed to be from the government's POV. Whoa - that rhymed!
@@willnitschke If there was Person A who started out as a scammer, then it is fair to scam him. In this case, people who supported Taxation prior to learning its MMT role.
It’s actually not necessarily bad for laborers. A devalued dollar means labor can be more competitive at home in the USA. We’ll see a lot of factories spring up at home rather than manufacture everything overseas.
MMT is so full of holes it's hard to believe it's still taken seriously, especially considering the inflation we've seen across the world since that TED talk was given.
Techincally its not inflation. It's a price shock, triggered by the ukrainian war and the loss of russian gas from the world economy. Inflation happens when the price of everything, including wages goes up in a spiral like in the 70s.
She talks about not being in full employment and that we have the capacity to rebuild the infrastructure. But, so what if we have unemployed people. Do they know how to use a hammer, or build a train track, or lay concrete?
1. To create demand for that currency 2. Tax can be used to control inflation 3. Tax can be used to create more equality 4. To exercise nation-state power, monopoly of violence and taxation (death & taxes) PS. I'm not MMT supporter!
This feels like your projecting your bias onto what people say. It is literally true that the US government, as the sovereign issuer of money, is able to create and spend money on whatever it wishes. But that’s not the whole story. Every MMT’er, Kelton included, caveats that with the limit being the inflationary pressure of that spending. Don’t let bias hold you back from steal manning the arguments of others.
@@timgwallisSo how do we just create all the money we need for free healthcare, college, etc etc and deal with the inflation? That’s the missing piece of the puzzle. Monetary systems can only handle so much inflationary growth at a time.
@@januarysson5633 totally agree with the last part of your statement. However I disagree that the “how to handle” part is missing. MMT’ers make it clear that the means to deal with inflation is taxation. Creating new money increases the money supply in circulation, taxation reduces the money supply in circulation. Personally I favor a progress consumption tax. The more you spend, the higher the tax rate you pay. With a digital dollar the rates could be programmatically set to ensure the money supply in circulation new grows faster than 2% annually.
January In the past miners of silver and gold brought metals to mints and the mints made coin money that would be given to the miner. ZERO NEW DEBT is made when mints would convert metal into coins. Today fiat currency has made the system so when a new mortgage is made new dollars are also made. That is a totally different system.
This is the first time I've heard MMT described by a proponent as a matter of perspective treating deficit spending like double entry bookkeeping. And it's still stupid...
Well, the science of it is 100% accurate. The implications of using it is a different question. That's why you should never listen to economist who don't understand money and banking, including this clown economist.
An important point for anyone to understand is that money itself is not wealth; it's merely a tool, a medium of exchange for goods and services. A good currency, like gold or silver, will also have other properties and can be a store of wealth, but ultimately, it's the exchange function that's the most important. Wealth is actual goods, services, and resources utilized for goods and services. It should be obvious that merely printing more money not only doesn't create new wealth in the form of goods and services, it dilutes the rest of the currency in circulation, devaluing the currency and causing price inflation. Borrowing money is trickier, especially when the government's doing it. Still, like any borrower, the government either has to pay it back or default on the loan. They often get a pass because it's the government borrowing the money, but they shouldn't. The money government borrows has to come from somewhere, and the question is where would the money have gone if government hadn't borrowed it? Either way, printing or borrowing, the government isn't "stimulating" the economy into creating more goods and services, it is merely redirecting the economy into whatever industries or sectors they think need 'stimulating'. The government can never run out of money, but the more that they borrow or print, the more bad consequences they create. That's why it's not "free" money! Stephanie Kelton is wrong to say that it would be inflationary for government to spend only during "full employment". How many concrete workers and architects does she think are unemployed? And government spending rarely targets specific groups of people in such a way. She's just expecting, or perhaps *hoping* that those unemployed people will become employed due to government spending. This is reckless thinking when you can't explain how it will happen.
MMT'ers will respond by noting the difference between the money supply and the money supply as measured against economic output. But, 1-2% inflation is still inflation, and the Federal Reserve understood this when their inflation target used to be 0%. Heck, Hanke says the target should still be 0%; it's a fair issue to debate. But even if there are some MMT'ers who want 0% inflation, they are still ignoring the counter-factual inflation which comes in the form of central banks preventing slight deflation----technological/growth deflation, which is OBVIOUSLY good deflation.
@@macsnafu and that is only credit deflation, particularly when wages fall more. But there's nothing bad in itself with falling prices, because a growing economy brings prices down, particularly in terms of our wages. That's capitalism
The problem with MMT is that they believe the relationship between inflation and employment is a step function. Everything else is main stream econ. Your post assumes people are rational, but they change their work and investment patterns based on feelings. The government can change people’s behavior (feelings) so they work more and make more stuff.
Mac Look up goldsilver money or Mike Maloney. He does have some good videos on money. There’s a reason and historical reason he always says gold or silver is money but the U.S. dollar today is fiat. Currency doesn’t preserve purchasing power. Money has like five key tenets that a good money must have and preserving purchase power is one of those. You’re right. If gold is found in mass quantities it’s inflationary. Now gold is a good or product in itself as it’s more rare. So even if it wasn’t money it’s worth something unless if you’re a Native American or some tribe using other things for barter. Some tribes used gold for barter but some used sea shells etc. and Polynesians on one island rowed 200 miles to another island to bring back a rock and that rock was considered money. So ya people should distinguish between money and currency.
In the discussion of full employment, do economists ever take into account the mismatch between the job vacancies employers want filled and the pool of workers who are qualified to perform those jobs? The Army only needs a few tens of thousands of recruits annually. However, 71% of youth do not qualify for military service because of obesity, drugs, physical and mental health problems, misconduct, and aptitude. Given the casual effort of our public education systems, there are probably no categories of employment where corresponding labor resources are readily available.
Yes, an industrious counterfeiter will never run out of money. But a big enough counterfeiting operation can lower the value of everyone else's money to finance itself. Even if it's spending its funny money on roads and bridges, it is impoverishing citizens by reducing the value of their holdings in money. Am I missing something? If printing money is harmless, why shouldn't everyone do it?
The trick is that "the private sector" includes the entire economy minus the government. So of course all government spending goes to the private sector, because that's the only other party to trade in this simplified model. Nevermind the massive wealth transfer from the average person to weapons manufacturers, bankers, government contractors, bureaucrats, politicians' private stock portfolios, welfare recipients, etc. That's all technically part of "the private sector."
Stephanie Kelton said "Just as a 6 becomes a 9 when looked at from a different angle..." THAT is the crux of the problem of MMT. A 6 NEVER becomes a 9, no matter which angle you look at it from.
I had a discussion with some friends who seemed to want to champion MMT. What they failed to recognize is that inflation is the real killer of MMT, and you can't print your way out of it. The latest round of money printing by the government, where they increased the money supply to the tune of 30%, led to approximately 20% cumulative inflation from the time they started printing the money. Not good at all.
She's dishonest. She was telling us that inflation is the worry, and when it got here in 2021/2022 she told us that inflation was transitory. That's an ad hoc excuse because she knows inflation means there should be no more handouts. Having the reserve currency isn't a difference in kind, it's just a difference in the amount of time the U.S. Government has. Guess what happens when you print too much? Well, then you don't have the reserve currency anymore! No duh
I wonder where the data came from to correlate deficit to the surplus. How do we know there wouldn't still be a surplus without the deficit? Considering the government is very inefficient, her graph pretends its a 1:1 correlation. Did she factor in the surplus there would of been if there wasn't inflation from deficits from increasing the money supply?
Google will actually have to pay back its “debts”. For the federal government’s “debt”, all they owe us is not to take our heads if we pay our taxes. Come on guys.
Bob, how can you think the government owes anyone the amount of the deficit? It’s simply an accounting of how much they have spent into the economy that hasn’t been taxed back out.
@@murp0443It's amazing how people don't grasp that simple thing. "Look, the $5 in your pocket is yours!" -"When are they gonna pay me that $5 tho? And where dey gun git da money?"
@@murp0443 *Bob, how can you think the government owes anyone the amount of the deficit?* Because the debt is owed typically as bonds, which pay interest. And the government has to repay the principle and interest in full, sh*t for brains. 😂
Creating more money is necessary when your real economy is growing. More cash is needed to complete the increased growth in transactions. But supporters of MMT mistakenly believe this relationship also works the other way around. That if you increase the amount of cash circulating, this automatically increases economic activity. In real life this doesn't work. What happens is that sellers of non-discretionary goods elevate their prices rather than creating more goods and services. There is no growth in real economic activity, just inflated prices.
She should’ve explained why the government cares so much about collecting my taxes if they can just print all the money needed for high speed rail, free housing, and foreign wars.
@@Richest_Person_in_the_World Bit didn’t those dollars I sent the IRS have value back when they were in my wallet? How does me giving them to the government give them value?
@@theybrokemywatchThe fact that They (dollars) are the thing which saves you from tax punishments. As in "Give us $100 or we'll jail you," you react: "Whew thank god I do have $100 here."
theoretically yes. keep in mind, the inflation to an extent makes previous debt effectively less valuable, so easier to pay. all of this rests on a functional productive economy and foreign demand for the us dollar though. as soon as there are problems with these two things, the us will be in a load of pain. until then, yes they can spend basically as much as they want.
A government could in theory buy everything. Society may collapse around it, but the government, if backed by a sufficiently capable military, would not. What's not to like?
Wouldn't it occur to the MMT proponents that, if they "only" have to monitor inflation, at the very least, the debt and deficit are metrics you'd use as early indicators of when you're about to enter inflationary levels of spending? IOW, even if you try look at it from their perverse perspective, the debt and deficit should still be very meaningful (and very distressing at current levels).
Is there a limiting principle? Ask yourself: Would it then be fine to run $100 trillion deficit every year? How about a quadrillion? If it really is a perpetual motion machine, it’s all benefit at no cost.
The general public now accepts all other forms of taxation as legitimate means of operating government. I’m sure the general public will accept direct inflationary money printing as a legitimate government operation in the near future as well.
Simple thing to remember, if you hear the terms "deficit", "print money", "borrow", "quantitative eas" these are the same things at government level, and it all leads to the same thing: inflation.
@@Richest_Person_in_the_World The price level is 30% higher than 3 years ago. Thanks for asking. If inflation is 50% for 1 year, then everyone is twice as poor. Even if the rate of change _then_ drops to zero, people are still twice as poor, knucklehead.
No matter the angle you view it from, a '6' is never a '9'. Someone might mistake a '6' for a '9', but acting on that mistake might lead to disastrous consequences. For example, I was once playing in a golf tournament and had an easy 9-iron shot into the green. I took my 6-iron out of my bag -- thinking it was my 9-iron -- and promptly put my ball into the swimming pool of the home behind the 9th green. My believing it was a 9-iron had no effect on how far the ball flew. Nor does believing that deficit spending is a good thing alter the long-term deleterious effects of such spending.
Except when the red ink gets put, not into black ink, but cronies, war and losing enterprise (eg Solyndra,etc). She’s making a grandiose assumption that “government” makes perfect, unbiased decisions. History and current experience suggest otherwise. Especially the more removed spending is from accountability.
Where does he think the $100 dollars came from for the robber to steal? Somebody had to print it didn't they? If the Gov didn't print money, he wouldn't have his $100 in the first place.
You think you're calling their bluff, but MMTers, Thomas Pikkety and others have said that taxes should be understood as a social engineering tool rather than a finance tool. The point of taxes is to punish you for behaviors the regime doesn't like, and to control the flow of resources so that wealth is distributed according to what the regime thinks people deserve instead of according to what they earn through voluntary exchange.
How can there be no inflation? If you put ten dollars under your mattress in 1980 that ten dollars will not buy you the same goods and services in 2024. The sky falls for countries that print their way out of financial troubles. The US has inflation it’s just not 1000% and crippling society.
@@E2680-l5yThe government aims to have 2% inflation and in reality they have 3%. Big whoopty doo. Can't you make an additional 3% annually?
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@@Richest_Person_in_the_World 3% after 50%+... Perhaps you don't understand how compounding works... the effective rate since 2020 is way higher. Just because it went up 50 and then only 3% more of that...
It’s not about what is happening today it is about what could be if governments are irresponsible. Thats the entire argument, she said governments should spend without concern for consequences. There are consequences and examples are countries like Argentina. This isn’t about getting an extra percent return in personal finance, that is narrow minded thinking. This is about policy and the impacts it has on society.
Host, is this channel receiving any financial incentive to put out this video by anyone other than TH-cam advertising (assuming you’re not allowed to chose the advertising, save maybe for eliminating certain advertising categories like Manscapers, etc)?
She already lost me right at the beginning, a six is still a six and a nine remains a nine no matter what angle you look at it. Just because you look at a six upside down, does not make it a nine, that is not how maths works, it the same way that having a 80085 on your calculator does not suddenly give you boobs. A trick of the mind does not suddenly represent reality. Try is with actual real things, try looking at 6 cows at a different angle and see if you magically get 9, if you claim that people would call you crazy yet some people think MMT is sane.
@@theBear89451 The person who actually spells out the right number, whatever the number is, a six CAN NOT be a 9 at the same time, that is a contradiction. It can either be a 6 or a 9, not matter what angle you look at it from, but not both. The angle you view it from is completely irrelevant to whether a 6 is a 6 or a 9 If one is stating otherwise, they are at best performing voodo or at worst they are grifting, but they are NOT speaking truth. If type a 6 on your laptop, and then turn the display around so it now looks like a 9, does that make it a 9? Of course not, its still a 6, you just have the display upside down. The computer will still interpret it as a 6, if you ad 1 to it you will get 7 and NOT 11 !!! And the truth is, MMT is BS! They are just Grifters trying to confuse people with a economic sleight of hand (i.e. they are pretending that a 6 is a upside down 9, when it never was), its just designed to confuse people.
Abraham Lincoln once posed the question: 'If you call a dog's tail a leg, how many legs does it have? ' and then answered his own query: 'Four, because calling a tail a leg doesn't make it one,'
I have a friend that lives in his van. He plans to do this his whole life. He's been doing it for over 30 years. Is he cheating the housing market? He thinks everyone should do this. What is normal for one is abnormal for others. He gets a shower at the YMCA or a health club. Laundry mat for his clothes washing. When machines do all the work, we will find something else to do. The government spending money they don't have, it's great until it doesn't work anymore. The idea of money was an invention, so now it is being redefined. That is liberal just as a country run by who is elected instead of a king or dictator. I save in silver or other metals just in case.
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.Read more
Let's face it... buying more stocks & index funds during stock market corrections and bear markets is scary. Which makes it really hard to do for most people like me. I have 260k i want to transfer into an s&p but it’s hard to bite the bullet and do it.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.Read more
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.Read more
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
@@aquious953This summer a cab driver charged me 120 or 130 euros which I felt was too steep, but he was like "No no it's normal." But then I went to the Carrefour supermarket and got some ice cream, fruit etc. and the tab was like 2 euros. It was then I knew he had robbed me blind. Anyway the supermarket bill was not 500 euros as you claimed and used taqiyyah.
@@Richest_Person_in_the_World *Color me skeptical. It would be $50 here in Europe* That's because your mum does most of your shopping for you. You're just accounting for the cost of candy.
I don't think theres any surprise this thinking would come from the US, the country with millions of overweight people that flock to any drug that will promise weight loss with no exercise or dieting. MMT is the drug that promises pizza and icecream for all without austerity.
you're absolutely spot-on. That is the modern American thinking: don't bother checking the nutrition of your soda, otherwise you might see that chugging sodas 24/7 is why you're overweight. Don't bother dieting or exercising, as that requires real effort... instead, just believe what the "experts" tell you to believe.
It seems to me the real complaint here is that MMT isn't deceptive enough! Compared to the current system of hiding monetary matters from democracy by obfuscating, and spreading misinformation. This is where the information theory of markets has taken us - to a system of economists and autocrats thinking like PR representatives for the current system. Isn't this exactly the kind of system due for a Minsky moment?
If Modern Monetary Theory worked, Venezuela would be the richest country in the world. Didn't Zimbabwe try MMT under its dictator, Robert Mugabe? The result: history's greatest hyperinflation.
Nobody said printing money produced real wealth. However that equation works backwards too: real wealth is not a constraint on printing dollars, therefore stop saying stuff like "We've run out of dollars."
@@ngana8755Not sure what you mean, but you certainly dodged the point. If moneyprinting is disconnected from real wealth creation, that only proves the U.S. can pay its bills.
Gold is to the advantage of the rich. Its never been an advantage to the poor. Gold saves the rich when capitalism takes a nose dive which it does about every 7 to 15 years, and the rich feel little as long as they have their money backed by Gold.
Schiff definitely does not support MMT and doesn't acknowledge anything good about it. Is why lije many others who have staked out positions in the past and resist anything new that might be better.
@@tonysu8860Yeah he opposes it, but also Gets the part where USD is a tax credit. So it is actually bizarre that Schiff as a Dollar Hater actually thinks there "more to it" than what MMT says
Printing money is used supposedly to make jobs, BUT, we know from global experience that when the economy slows down, that hiring people to dig holes and then paying them to fill them in and then dig again and fill again is what China has been doing since 2015 by building over 200 entire cities that are empty. Now, that has caused a massive bubble that is now bursting and is destroying the economy. That’s what the craziness of MMT does.
There is so much straw manning in this conversation from Bob Murphy. You should really get Stephanie Kelton on. That would be a great episode. A remember watching a debate years ago between Bob Murphy and a MMT proponent and Bob Murphy lost badly. It's like his neural pathways are so hardwired to see the world in a certain way that he doesn't have the mental agility to entertain any other perspective. It just doesn't compute for him. I remember when I came across MMT for the first time after I had been wrestling to make sense of quantitative easing after the 2008 financial crisis. Using an MMT lens suddenly everything makes sense once you properly understand it, and you can't understand it listening to a second hand critique. Of course MMT economists can be wrong. They can make misjudgements like anyone else. But they do have the right framework for understanding how modern money works and not having that understanding can lead to big mistakes in policy making.
Totally agree, but with respect to this video and countless others on the internet. The world would be such a better place - and people do better informed - if there was more healthy debate, rather than one side poo pooing the other and vice versa. So I vote for inviting Stephanie onto the show.
Hello. I have to say that you are making a big mistake if you think they the proponents of MMT have a good understanding of the framework of modern money. Refer to my comment made in main chat. In essence they ignore the second side of the creation on money on the banks' Balance Sheet. Thanks
@@Richest_Person_in_the_World Professor Sh*t For Brains, that's like saying because the government stole 90% the money in your bank account, it's OK, because they're only stealing a smaller amount this year. 😅
The only thing misleading here is your intentional misrepresentation of MMT. You clipped the most counterintuitive points of MMT and cut out the parts where she explained what she meant. You said there's "nothing special" about the government compared to Apple. Yes there is! The United States is the issuer of the USD. USD is to the government as United Airlines flight miles are to United Airlines. If United Airlines dumps flight miles on into their market, it would reduce the value of the points only if United runs out of seats to sell. The number of planes they have is the limiting factor. This would equate to productive utility in the US economy. I'm not holding my breath given the other comments in this thread, but I'd encourage your viewers to be more critical and learn MMT from actual modern monetary theorists.
The United States does not issue USD. The federal reserve does and it is not publicly owned nor does it provide a reserve. How can people claiming to understand economics not get this?
The problem is that the deficit spending means that a group of people who has not even been born yet are going to be born with debt to their name, in order to give a kickback to the donor class. If there were transparency and accountability you could make the case for taxes. But the people who collect the money do everything in their power to make sure there is no accountability nor transparency. The money isn't going to help us as a country. We shouldn't have a single veteran sleeping on the streets while we give hundreds of billions to foreign countries to fight our proxy wars. "No tax payers were involved in that process" We are having to bear the negative externality of higher prices due to the inflation though. These things aren't "Free." Someone is having to pay for them.
That is also a myth, Mosler explains that if our children produce 1000 cars in year 2050, they will NOT have to send them back via time machine to 2020 to pay for anything
3.59 They will print more money! Inflation eases debt burden. Her whole point was that keeping inflation under control was more important than the debt number.
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Inflation doesn't actually ease debt when everyone has to drop the currency to avoid collapsing their own from inflation.
It's shocking. MMT is not that complicated, though it does uproot a lot of concepts we grew up with. Everyone first encountered paper currency at age 3
@@willnitschke good luck learning about anything worth learning from a TED talk video, much less from a commentary video. As a description of the current macroeconomic system we live in, MMT is spot on. Anyone who says otherwise is referring to a system that is a century old, like the guy in beard is, or just referring to a fantasy island economy.
I'm teaching you another's what Merrill Jenkins has presented in his book and on TH-cam there's not a person on this planet that can out debate Merrill Jenkins
It's been my observation that every clueless defender of MMT will tell you it's correct, wonderful, sound, etc. But have no clue what they're talking about, either.
@@Richest_Person_in_the_World And you definitely lack the mental capacity to respond with economic arguments, which is why you always reply with arse pain. 😅
The state and its agents coordinating people, resources, and productive activities towards a unitary objective, requiring they share the same vision and direction. All Stephanie Kelton needs is a mustache and firm hand gestures while she riles the crowd towards its shared future.
Murphy should know that government bonds do not provide the government with revenue. Rather, they are US dollars the government already spent that it has not taxed back. The federal government creates US dollars (which is what people mean when they say the government can always "print" dollars). It does not need or use "revenue".
I'm not sure what's wrong with him. Either he's upset about the Mosler debate so he refuses to study or acknowledge Mosler Economics. Or he has tried but isn't equipped
Sorry, this is idiotic. The bonds are purchased using dollars, which are given to the government. 🤣 The MMT crowd don't even grasp the most basic concepts in finance.
Money just denominates (represents) value. The value essentially never changes, just the amount of money that represents it. Value changes when you add value, through labor, change in demand, etc.
It's shocking that Bob as a Ph.D. can't follow this stuff after a TEN YEAR PERIOD of being exposed to it. Or does he avoid giving credit to Mosler because he was unprepared for that old debate
3:40 Absolutely amazing how Bob Murphy still doesn't get it. MMT explains that if the government "owes" $10,000 that is just the other side of your $10,000 checking account. But Murphy shouts: "And HOW do they plan to pay us then??" 🤦♀️
MMT doesn't "explain" anything. It's just absurd Statist theology. If the government goes into debt to issue food stamps, there is no asset to balance the debt. The poo in the toilet the next day, is not an asset that can zero the debt. This stuff is sooooooooooo stupid. 😅🤣😂
@@Richest_Person_in_the_World the government doesnt need to be in debt for me to get paid tho lol. there's a neat thing called a bond, and it's similar to holding stock in a company. The company doesn't need to go into debt to pay its workers.
I don't know if MMT is correct or not but your guest Bob Murphy immediately discredits himself with his initial analogy of Google issuing bonds. One of the fundamental parts of MMT is that when the government issues bonds it issues bonds in its own currency. The government also controls the currency so it can also print money to cover its debts. By printing money the government could cause inflation. That's why there's an emphasis on controlling inflation in MMT. In MMT you control inflation by raising taxes and raising interest rates. The closest comparison for a corporation is probably Google issuing more stock. Google controls its stock so it can always issue more stock, but by issuing that stock it devalues the stock of the existing stockholders. So either your guest just doesn't know what he's talking about or he's being intentionally misleading. I find in a lot of these conversations about MMT, the people who are trying to discredit it don't really take it seriously enough to actually study it so they can refute it.
*That's why there's an emphasis on controlling inflation in MMT. In MMT you control inflation by raising taxes and raising interest rates.* No there isn't... So the "fix" for the inflation that has crushed poor people in the US in recent years was to raise their taxes? Do they even pay taxes? Or is the fix to raise taxes on the productive segments of the economy and cause a depression? MMT theology is completely moronic... 😅🤣😂
@@willnitschke we don't have an administration that is practicing MMT right now. So the poor and middle class are just suffering under the current system. If you really want to understand MMT then I suggest you read Stephanie kelton's the deficit myth. Like I mentioned before, I don't know if the theory holds up. I think there are a lot of questions around if the government would actually respond if inflation got out of control under MMT. But what I see is a lot of lazy responses to why MMT wouldn't work. Especially with so much dissatisfaction with the current system.
@@klf9161 I've looked at. It's nonsense. I have better uses of my time. This stuff is ideology. I'd ask you to ask yourself, why are you taking seriously the incoherent writings of a self published crank (Mosler) and grifters like Stephanie Kelton who is primarily out there promoting this stuff to achieve power and prestige. Now Kelton is no fool, but she's been serially wrong about the economic consequences of her ideas. What's happened in 2021-24 essentially refutes her.
The issue that I think is coming up in this discussion is that MMT descriptively is more accurate than the current view of monetary theory and macro. Now if everyone full jumped onboard the MMT train I worry the politicians and the fed will not show restraint in spending which would def lead us to the hyperinflation hell most libertarian are worried about. If you view MMT as a lens there is huge value in understanding and learning it. Sadly this is an issue that will continue because some MMT proponents are so deficit happy that they will be used as the poster child of why MMT is dumb
There is nothing "accurate" or even intelligible about MMT. All I here from its cult members is how wonderful it is, while being completely incapable of explaining why.
Honestly, if you want to cede this ground to the side that would deficit spend to oblivion then stay with that attitude. How MMT views taxes, debt, inflation, and interest rates is way more accurate then current views of these topics. They also fit within the same framework, the mechanisms are all the same it’s just what each one does that MMT views differently. Taxes - This is what keeps inflation in check by removing money, it also gives value to your countries currency because you have to pay for it with your own currency. think petrodollars they all had to pay taxes in us dollars Conventional view is that money printing will collaps the economy and ruin us all, meanwhile if you understood MMT you would know that this feared collapse or “bankruptcy” of our government is impossible and that you should he buying assets like stocks as much as possible because of all the deficit spending. I can give more examples where mmt is accurate but didnt want to make this post any longer
@@fwuffymilk8369fr Every cab driver for the past 5 years has been parroting "They printin monay" and people still think they are being edgy for saying that
they already don't show any restraint, but i see that you mean they'd show even less restraint, and you're right the few holding them back from going over the edge are the nonbelievers
Stephanie Kelton's explanation of how government spending could be inflationary was wrong. Inflation is caused by devaluing the currency, which is done by printing more money. Or, as Milton Friedman put it, inflation is caused by too much money chasing too few goods. How do we get 'too much money'? By government spending that is unconstrained by society's inability to lend or be taxed to cover that spending.
Mr. Murphy is clearly not intelligent enough to understand the problem. Kelton doesn't say the National Debt is an asset. She says the federal government accrued the debt by providing goods and services to tax payers. The government doesn't owe taxpayers anything. They have already received the goods and services. The government owes the holders of paper, which we can cover anytime we really want.
Sure, the government can continue to issue more debt, until such time that the price of that debt becomes so high, it has no money left to fund anything, not even more debt. Hence forced austerity. What's not to like? 🤣
3rd biggest spending is on the debt interest 2nd biggest is on medicare/medicaid 1st biggest is on social security Social Security will be gone in 9 years Medicare/Medicaid is only used by those too stupid/useless to afford private health (it also fucks with the health market) and paying off Debt interest doesn't provide a good or service to us
I am not getting how gold can back a currency in today's economy. Total value of the world's gold reserves is $12 trillion? Total value of currency in circulation is something like $300 trillion.
government's borrowing and printing of money is what causes inflation. how can she expect to keep inflation in checked and still continue with modern monetary theory. impossible
@@Richest_Person_in_the_World Inflation has caused a 30% decline in purchasing power. That is not going away, dimwit. Also headline inflation is 2.5%, 50% above target, and core is even higher. But even if it was 0%, the damage doesn't go away. This has been explained to you many times, yet you continue to repeat your stupid here.
@@willnitschkeWhen you were making hyperinflation claims in 2009, you did not say: "I mean cumulatively over 1000 years." You meant inflation in a single year would be high. Now you're backpeddaling because your prediction failed. The reason for the failed predicton being your lack of understanding of the monetary system.
@@Richest_Person_in_the_World Babbling that someone is "back peddling" but being unable to explain the "back peddle" just means you're a sulky nitwit with arse pain, sorry. What is even more pathetic, is when your bullshit is called out about you conflating rate of change with the level, you actually try to pretend that the rate of change is what's important and not the absolute level. That's like declaring the balance in your bank account is of no consequence, only the current interest rate. Talk about sh*t for brains... 😂 Also, there have been no "failed predictions". MMT style polices were just as catastrophic as mainstream economics predicted they would be.
@@willnitschkeWhen you people predicted high inflation, no way no how was that a claim about inflation being 1.1% per year but over the decades it cumulatively comes out 40%, and voila. No, your clear implication was that inflation would be 200%+ per year
@@Richest_Person_in_the_World Professor Sh*t For Brains, that's like someone pointing out that the government stole 90% of your money, but don't worry about it, the theft is more modest at the moment.
Don't look at foreclosure as losing a home, think of it as a bank gaining an asset.
Bank is not gaining an asset, but whoever buys at auction shold be.
@@aaronfreeman5264
Unless the buyer buys the house outright the buyer has a mortgage.
A mortgage is a liability for the buyer not an asset.
However the mortgage ( in the form of mortgage payments ) does become an asset to the bank that has lent the money.
but,
Even if the buyer buys outright the house only becomes an asset after the bank that foreclosed on the original mortgage has sold its “asset” to the buyer.
Wrong, the bank's asset is having a federal reserve account.
Brilliant!
Let’s hope all Americans are foreclosed on and we can finally save the economy
🤣🤣🤣👊🎯🎯🎯
I knew that lady was nuts when she used that "6 or 9" analogy. Someone drew that 6 or 9, so someone knows which one it is, therefore there is an objective right and wrong answer.
Subjective morality is poison to ethics. Didn't know subjective economy was a thing.
Its value that’s subjective. “The economy” is a figure of speech.
@@theGefilteFist
"Subjective: characteristic of or belonging to reality as perceived rather than as independent of mind".
Price is subjective. Value is not. The circumstances in which an item is presented determine if it has value or not.
Gold has objectively no value, outside of computer chipping and electronics. Its price is based entirely on subjective assumption rather than objective utility like steel or gasoline.
@@1krani price is literally printed on the price tag (where applicable). Everyone has to decide for themselves if the value they get out of something is worth the price cuz the value only exists in their heads
Subjective morality is the only morality, that actually exists. Subjective economics ofc does doesn't exist.
@@vulgoalias4050
For morality to be subjective, one would have to believe that certain ideas or actions are not inherently hypocritical or self-destructive. Rape springs to mind.
I only had $0.0000008 in an account, but I had a talk with the branch manager, turned the statement upside down, and she agreed and fixed the computer, I'm a multimillionaire now. It's all about communication skills.
I cannot believe she actually said that, again I ask: where are these “economic” experts coming from?
Why do we even bother to keep a record of who owes what to whom?
@@thedave7760 Assuming you mean who owns how many dollars to whom, the first question has to be how did these dollars come in to existence in the first place? How can a dollar come into existence without somebody owing somebody something? That has to be fully understood before this topic can be rationally discussed.
My Canadian government believes this. Trudeau said “deficits balance themselves”. People actually believe this crazy. Big government folks dream this stuff up! I would love if this was true. No one has to work, no taxes, no problem right…wait if no one is working, where is my car, house, food!! Value is not created by government! Government only consumes value!
I had 58008 in an account and turned it upside down.
Listening to her speak is like listening to a teenager talk about credit cards. "Yeah, you just use the piece of plastic and it pays for whatever you want! its free money!"
Not really the same because you owe to your bank, while the government does not owe to that bank
@@Richest_Person_in_the_World What do you think happens when we run a deficit? We raise the national debt. If we default on that debt, it can be catastrophic to the entire country.
@@novacorponlinewe don't default on the debt, we print more money, which can or cannot cause inflation depending on where the money goes and what is available and needed in the economy
The Richest Person In The World is right; don't insult teenagers, by comparing them to Kelton. At least a teenager will bear the cost of their debts themselves, or maybe with their parents' help. The government makes 7 billion innocent 3rd parties pay for their handouts to weapons manufacturers and government contractors and bankers.
@@novacorponline If the government loads my account with $1,000,000 yes that is public debt now, but it's my asset as a citizen. Therefore you should rejoice at the realization that the deficit clock is your savings clock
She advised Bernie Sanders, is there really anything else that needs to be said?
Remember how they loved Venezuela as an example of socialism working...
Any system can work if you have vast amounts of oil wealth. Saudi Arabia is a dictatorship or a kingdom depending on your perspective and they have a pretty good quality of life.
@@danparish1344 Depending on your class. Outsiders don't find it so good.
@@danparish1344 they have low crime because the harsh punishment is a deterent.
Come on, man! Socialism just hasn't been done right.
She's totally disconnected actual goods and services from the amount of money and increase in productive capacity. A recipe for inflation.
it used to be working coz china and japan were buying up all the excess bond. create a cheap cost of borrowing and avoiding high inflation. but now no foreign country buying up the excess bond, hence it will cost inflation.
This is 100% correct! Even worse these people believe in Keynesian economics but they only follow the part about deficit spending during a recession. They will never stop spending so we will never have a baseline on the economy to know if we should be running deficits or surpluses.
@@objectivethinker3225A government suprlus means your bank account is getting drained. Not ideal
@@Richest_Person_in_the_World No, a fiscal surplus can be used to pay down the national debt. But you are correct if we didn't have 35 trillion in debt.
@@Richest_Person_in_the_World What you say is undoubtedly true and bad for you, but this is supposed to be from the government's POV. Whoa - that rhymed!
Ripping people off isn't bad. You need to look at it from the perspective of the scam artist
If the person being ripped off originally intended to rip you off, then I say it's fair
@@Richest_Person_in_the_World Except nobody wants to be ripped off, so not fair. Still.
@@willnitschke If there was Person A who started out as a scammer, then it is fair to scam him. In this case, people who supported Taxation prior to learning its MMT role.
@@Richest_Person_in_the_World People forced to pay taxes are not scammers. Still.
@@willnitschkePeople who advocate Taxation are scammers. Their intent was to rob thy neighbor
Devaluing the dollar is insane unless you hate citizens.
The world... it's insane that they'd subject everyone to it.
It’s good for asset holders, but bad for laborers. Reference: 2020 to today.
If you want the goverment to Hand you a sound currency, you are asking for a government handout
And love corruption.
It’s actually not necessarily bad for laborers. A devalued dollar means labor can be more competitive at home in the USA. We’ll see a lot of factories spring up at home rather than manufacture everything overseas.
MMT is so full of holes it's hard to believe it's still taken seriously, especially considering the inflation we've seen across the world since that TED talk was given.
Because it's about turning economics into theology. Hence it doesn't need to agree with empirical observations.
MMT simply explains how money is created and used in the economy. th-cam.com/video/1_vNAY2Nrm0/w-d-xo.html
So you could have Poked 1 Hole with your comment, why didn't you?
Techincally its not inflation. It's a price shock, triggered by the ukrainian war and the loss of russian gas from the world economy. Inflation happens when the price of everything, including wages goes up in a spiral like in the 70s.
@@alexrenn2479 No it doesn't. MMT doesn't "explain" anything. It's just stupid nonsense. 😂
Modern monetary theory is just printing money Weimar style. Change my mind.
Did you know women could vote in the Weimar Republic? Just saying.
Weimar created problems create Weimar solutions
German inflation was tamed since then, so it's not a bogeyman
It's more like Zimbabwe money printing.
And transgenderism was rapidly on the rise, along with most other "diverse" viewpoints
She talks about not being in full employment and that we have the capacity to rebuild the infrastructure. But, so what if we have unemployed people. Do they know how to use a hammer, or build a train track, or lay concrete?
Following Kelton's logic, if deficits don't matter, why bother taxing at all?
Exactly. Just print money
@@goranserka3601 Because taxation gives value to the currency
Keltons what? That woman is delulu
@@kirk8100 your reasoning is so straightforward that no academic or establishment economist can possibly grasp it.
1. To create demand for that currency
2. Tax can be used to control inflation
3. Tax can be used to create more equality
4. To exercise nation-state power, monopoly of violence and taxation (death & taxes)
PS. I'm not MMT supporter!
I've seen so many people say the government CAN'T spend too much money. That's an impossibility unless making money worthless is the goal.
This feels like your projecting your bias onto what people say. It is literally true that the US government, as the sovereign issuer of money, is able to create and spend money on whatever it wishes. But that’s not the whole story. Every MMT’er, Kelton included, caveats that with the limit being the inflationary pressure of that spending. Don’t let bias hold you back from steal manning the arguments of others.
@@timgwallisSo how do we just create all the money we need for free healthcare, college, etc etc and deal with the inflation? That’s the missing piece of the puzzle. Monetary systems can only handle so much inflationary growth at a time.
@@januarysson5633 totally agree with the last part of your statement. However I disagree that the “how to handle” part is missing. MMT’ers make it clear that the means to deal with inflation is taxation. Creating new money increases the money supply in circulation, taxation reduces the money supply in circulation. Personally I favor a progress consumption tax. The more you spend, the higher the tax rate you pay. With a digital dollar the rates could be programmatically set to ensure the money supply in circulation new grows faster than 2% annually.
That's why we have tax, to make money more valuable.
January
In the past miners of silver and gold brought metals to mints and the mints made coin money that would be given to the miner. ZERO NEW DEBT is made when mints would convert metal into coins. Today fiat currency has made the system so when a new mortgage is made new dollars are also made. That is a totally different system.
That lady is insane. FREE MONEY YOOOOOOOO
Second that.
Insane or evil?
Insanely evil.
And we are supposed to believe your theory that money printing is only done by inserting gold coins into the printing press
@@charliesmash winning!
This is the first time I've heard MMT described by a proponent as a matter of perspective treating deficit spending like double entry bookkeeping. And it's still stupid...
Well, the science of it is 100% accurate. The implications of using it is a different question. That's why you should never listen to economist who don't understand money and banking, including this clown economist.
@@curtbalch2321 It could be worse. Imagine you're Murphy and not learning after 10 years
Post-modernist economics :(
Post-common sense economics!
Post intelligence economics.
The real question is why they follow Keynes... he's the one that lost the power for England iirc.
Why does MMT arguments seem to be like accounting tricks? Why does it seem to be some sort of misdirection and sleight of hand?
An important point for anyone to understand is that money itself is not wealth; it's merely a tool, a medium of exchange for goods and services. A good currency, like gold or silver, will also have other properties and can be a store of wealth, but ultimately, it's the exchange function that's the most important.
Wealth is actual goods, services, and resources utilized for goods and services. It should be obvious that merely printing more money not only doesn't create new wealth in the form of goods and services, it dilutes the rest of the currency in circulation, devaluing the currency and causing price inflation.
Borrowing money is trickier, especially when the government's doing it. Still, like any borrower, the government either has to pay it back or default on the loan. They often get a pass because it's the government borrowing the money, but they shouldn't. The money government borrows has to come from somewhere, and the question is where would the money have gone if government hadn't borrowed it?
Either way, printing or borrowing, the government isn't "stimulating" the economy into creating more goods and services, it is merely redirecting the economy into whatever industries or sectors they think need 'stimulating'. The government can never run out of money, but the more that they borrow or print, the more bad consequences they create. That's why it's not "free" money!
Stephanie Kelton is wrong to say that it would be inflationary for government to spend only during "full employment". How many concrete workers and architects does she think are unemployed? And government spending rarely targets specific groups of people in such a way. She's just expecting, or perhaps *hoping* that those unemployed people will become employed due to government spending. This is reckless thinking when you can't explain how it will happen.
MMT'ers will respond by noting the difference between the money supply and the money supply as measured against economic output. But, 1-2% inflation is still inflation, and the Federal Reserve understood this when their inflation target used to be 0%. Heck, Hanke says the target should still be 0%; it's a fair issue to debate. But even if there are some MMT'ers who want 0% inflation, they are still ignoring the counter-factual inflation which comes in the form of central banks preventing slight deflation----technological/growth deflation, which is OBVIOUSLY good deflation.
@@MBarberfan4life Right. Deflation is only a problem for people (and governments) in debt!
@@macsnafu and that is only credit deflation, particularly when wages fall more. But there's nothing bad in itself with falling prices, because a growing economy brings prices down, particularly in terms of our wages. That's capitalism
The problem with MMT is that they believe the relationship between inflation and employment is a step function. Everything else is main stream econ. Your post assumes people are rational, but they change their work and investment patterns based on feelings. The government can change people’s behavior (feelings) so they work more and make more stuff.
Mac
Look up goldsilver money or Mike Maloney. He does have some good videos on money. There’s a reason and historical reason he always says gold or silver is money but the U.S. dollar today is fiat.
Currency doesn’t preserve purchasing power. Money has like five key tenets that a good money must have and preserving purchase power is one of those.
You’re right. If gold is found in mass quantities it’s inflationary. Now gold is a good or product in itself as it’s more rare. So even if it wasn’t money it’s worth something unless if you’re a Native American or some tribe using other things for barter. Some tribes used gold for barter but some used sea shells etc. and Polynesians on one island rowed 200 miles to another island to bring back a rock and that rock was considered money.
So ya people should distinguish between money and currency.
In the discussion of full employment, do economists ever take into account the mismatch between the job vacancies employers want filled and the pool of workers who are qualified to perform those jobs? The Army only needs a few tens of thousands of recruits annually. However, 71% of youth do not qualify for military service because of obesity, drugs, physical and mental health problems, misconduct, and aptitude. Given the casual effort of our public education systems, there are probably no categories of employment where corresponding labor resources are readily available.
Right. You don't go from fast-food worker to architect overnight!
Yes, an industrious counterfeiter will never run out of money. But a big enough counterfeiting operation can lower the value of everyone else's money to finance itself. Even if it's spending its funny money on roads and bridges, it is impoverishing citizens by reducing the value of their holdings in money. Am I missing something? If printing money is harmless, why shouldn't everyone do it?
She is saying benefits (more roads, …) outweigh the costs (inflation), not that it is harmless.
Make more money then
The trick is that "the private sector" includes the entire economy minus the government. So of course all government spending goes to the private sector, because that's the only other party to trade in this simplified model. Nevermind the massive wealth transfer from the average person to weapons manufacturers, bankers, government contractors, bureaucrats, politicians' private stock portfolios, welfare recipients, etc. That's all technically part of "the private sector."
@@theBear89451 Yeah except that we spend so much on fomenting and/or prolonging wars that the benefits don't outweigh the costs.
Stephanie Kelton said "Just as a 6 becomes a 9 when looked at from a different angle..." THAT is the crux of the problem of MMT. A 6 NEVER becomes a 9, no matter which angle you look at it from.
She's just trying an even simpler version of: "Someone's deficit is someone's surplus"
Even Jimmy Hendrix wrote a song about it!
@@Richest_Person_in_the_World Except that's even dumber than the 6 is 9 claim. 😂
So if she's right, and the government can do all this "paying for something by printing $", then why do we need to pay taxes????🤔🤔🤔
That way the dollar becomes valuable as a get out of jail free card
@@Richest_Person_in_the_World Still confused, I see.
She forgot to mention that we can always invade other countries if it doesnt work
You Russians?
@@Richest_Person_in_the_World You dumb?
I had a discussion with some friends who seemed to want to champion MMT. What they failed to recognize is that inflation is the real killer of MMT, and you can't print your way out of it. The latest round of money printing by the government, where they increased the money supply to the tune of 30%, led to approximately 20% cumulative inflation from the time they started printing the money. Not good at all.
Ask your friends, if you can take MMT to infinity, then why do we need to pay taxes? The government can simply print all the money it needs?
Circular argument. The taxation addresses the inflation.
She's dishonest. She was telling us that inflation is the worry, and when it got here in 2021/2022 she told us that inflation was transitory. That's an ad hoc excuse because she knows inflation means there should be no more handouts. Having the reserve currency isn't a difference in kind, it's just a difference in the amount of time the U.S. Government has. Guess what happens when you print too much? Well, then you don't have the reserve currency anymore! No duh
Yup. Total inflation shill
We simply have liars running things.
The name of that liar is Putin
@Richest_Person_in_the_World What flavor was the Kool Aid ?
@@Whowhatwherewhen5Am I supposed to praise the Kremlin in order for you to label me a free thinker
@@Richest_Person_in_the_World As far as I can see, your role in these exchanges is to be the virtual equivalent of the Village Idiot.
Not just liars, they're also stupid and greedy
I wonder where the data came from to correlate deficit to the surplus. How do we know there wouldn't still be a surplus without the deficit? Considering the government is very inefficient, her graph pretends its a 1:1 correlation. Did she factor in the surplus there would of been if there wasn't inflation from deficits from increasing the money supply?
Google will actually have to pay back its “debts”. For the federal government’s “debt”, all they owe us is not to take our heads if we pay our taxes. Come on guys.
Bob, how can you think the government owes anyone the amount of the deficit? It’s simply an accounting of how much they have spent into the economy that hasn’t been taxed back out.
@@murp0443It's amazing how people don't grasp that simple thing. "Look, the $5 in your pocket is yours!" -"When are they gonna pay me that $5 tho? And where dey gun git da money?"
@@murp0443 *Bob, how can you think the government owes anyone the amount of the deficit?*
Because the debt is owed typically as bonds, which pay interest. And the government has to repay the principle and interest in full, sh*t for brains. 😂
@@Richest_Person_in_the_World Wow, you're dumb. 😂
How does that lady even have a job spewing so much nonsense.
Creating more money is necessary when your real economy is growing. More cash is needed to complete the increased growth in transactions. But supporters of MMT mistakenly believe this relationship also works the other way around. That if you increase the amount of cash circulating, this automatically increases economic activity. In real life this doesn't work. What happens is that sellers of non-discretionary goods elevate their prices rather than creating more goods and services. There is no growth in real economic activity, just inflated prices.
She should’ve explained why the government cares so much about collecting my taxes if they can just print all the money needed for high speed rail, free housing, and foreign wars.
To give value to USD
@@Richest_Person_in_the_World Bit didn’t those dollars I sent the IRS have value back when they were in my wallet? How does me giving them to the government give them value?
@@theybrokemywatchThe fact that They (dollars) are the thing which saves you from tax punishments. As in "Give us $100 or we'll jail you," you react: "Whew thank god I do have $100 here."
@@Richest_Person_in_the_World 😥
@@theybrokemywatchLike in Monopoly you have a Get Out Of Jail Free card, and you might wanna hold onto it. The dollar is such a card IRL
Dont think of an IRS audit as something to dread, think of it as they're your friends coming by for a beer
Your beer and your chips and salsa!
Reminds me of that scene from Wolf of Wallstreet.
If a government can ‘never run out of money’ then does that mean the government has an infinite amount of money to spend on what it wants?
Of dollars yes. But it would be unwise to offer higher and higher prices every year
theoretically yes. keep in mind, the inflation to an extent makes previous debt effectively less valuable, so easier to pay. all of this rests on a functional productive economy and foreign demand for the us dollar though. as soon as there are problems with these two things, the us will be in a load of pain. until then, yes they can spend basically as much as they want.
A government could in theory buy everything. Society may collapse around it, but the government, if backed by a sufficiently capable military, would not. What's not to like?
@@delusion2987 if inflation begins to exponentially rise then would you curb that with fiscal policy?
@@kayedal-haddad Given that the government caused the inflation, it can also stop it at any time. As we saw recently, in Argentina.
Debt is Wealth. Slavery is Freedom. War is Peace.
Wouldn't it occur to the MMT proponents that, if they "only" have to monitor inflation, at the very least, the debt and deficit are metrics you'd use as early indicators of when you're about to enter inflationary levels of spending? IOW, even if you try look at it from their perverse perspective, the debt and deficit should still be very meaningful (and very distressing at current levels).
If the government can find all this money and it isn’t a problem why are the roads and infrastructure falling apart?
Lack of roadbuilders. Though color me skeptical that U.S. roads are bad
An MMT fruit-cake would reply, because the government hasn't printed enough dollars yet! 😅
printing money goes back to Rome if not further... they knew back than too.
They knew then, but it's been forgotten.
Is there a limiting principle? Ask yourself: Would it then be fine to run $100 trillion deficit every year? How about a quadrillion? If it really is a perpetual motion machine, it’s all benefit at no cost.
If they are so okay with deficits with no limit, why owe any taxes that offset the deficits?
Not a perpertual motion machine, but more moneyprinting is needed
@@AB-qt4djBecause if taxes stopped being collected, the dollar would go to zero. "That is not true!" you exclaim, while pretending to hate the dollar.
@@Richest_Person_in_the_World Except it wouldn't. That's just brainless MMT theology.
Any video of her debating or getting pushback/friction on her theories?
I would love to put her and Peter Schiff in a faceoff. She would get shredded.
Schiff realizes that USD is a tax credit, but hasn't put 2 and 2 together that that is where 100% of its value comes from
@@Richest_Person_in_the_World Unfortunately for you, Schiff understands that 2 + 2 doesn't equal 64 billion, unlike you.
The general public now accepts all other forms of taxation as legitimate means of operating government. I’m sure the general public will accept direct inflationary money printing as a legitimate government operation in the near future as well.
Simple thing to remember, if you hear the terms "deficit", "print money", "borrow", "quantitative eas" these are the same things at government level, and it all leads to the same thing: inflation.
No, that is the standard non-MMT boilerplate which is wrong
@@Richest_Person_in_the_World you didn't pay attention to the last 4 years did you?
@@letsgobrandon416 He is not very bright and an inflation denier, so just ignore him.
@@letsgobrandon416What is the current inflation rate in the U.S. and what is the Fed's desired target
@@Richest_Person_in_the_World The price level is 30% higher than 3 years ago. Thanks for asking. If inflation is 50% for 1 year, then everyone is twice as poor. Even if the rate of change _then_ drops to zero, people are still twice as poor, knucklehead.
No matter the angle you view it from, a '6' is never a '9'. Someone might mistake a '6' for a '9', but acting on that mistake might lead to disastrous consequences. For example, I was once playing in a golf tournament and had an easy 9-iron shot into the green. I took my 6-iron out of my bag -- thinking it was my 9-iron -- and promptly put my ball into the swimming pool of the home behind the 9th green. My believing it was a 9-iron had no effect on how far the ball flew. Nor does believing that deficit spending is a good thing alter the long-term deleterious effects of such spending.
MMT is the "Chase Check Glitch" of the elites
keynesian economics is trash...approaching almost 100 years of this bs.
And yet there has been no Muh Hyperinflation as you crowd predicted
Yes, and it's destroying western civilization
Absolutely absurd. Does the budget balance itself too? This lady is pure propaganda being used to gaslight us.
If the budget was always balanced, you would own $0 right now
@Richest_Person_in_the_World How's that? Not even a vague explanation.
@@Whowhatwherewhen5Because that $1 would have no way to make it into circulation. It would have been taxed away to cover the deficit.
@@Richest_Person_in_the_World No you wouldn't, you're an idiot, mate.
A deficit is not a deficit? WTH?!
It is but it's the surplus of private citizens
@@Richest_Person_in_the_World No it isn't.
@@willnitschkeNot even Bob Murphy is disputing this. He merely comes back with: "So what, if Google has a deficit, someone has that surplus as well."
@@Richest_Person_in_the_World He is disputing it. So am I. You typing made up drivel at people is just you making a fool of yourself, as usual.
Weimar. Also Hungary after WWII etc.
Also Zimbabwe, and Venezuela, and Argentina pre-Milei.
"Jungary!" Wow just wow
I hope that was just your H key being close to the J key
Don't you think L. Randall Wray has thought of that, he is a Ph.D. in economics
@@Richest_Person_in_the_World Economics isn't a science, it is a finance scam. Great if you are on the right side of the grift ;-)
@@williambranch4283 Economics is the fundamental science, hoss. With it, you can buy and sell every physicist
You need to understand MMT if you wish to become one of us (Top 1%) >__< And Runaway from Rich Dad, Poor Day
Except when the red ink gets put, not into black ink, but cronies, war and losing enterprise (eg Solyndra,etc).
She’s making a grandiose assumption that “government” makes perfect, unbiased decisions. History and current experience suggest otherwise. Especially the more removed spending is from accountability.
Where does he think the $100 dollars came from for the robber to steal? Somebody had to print it didn't they? If the Gov didn't print money, he wouldn't have his $100 in the first place.
If you pun 6 and 9 together you get 69 and that still costs real money 🤑
We need to put the 99 percent into the 1 percent, as Ali G said
@@Richest_Person_in_the_World Well Ali G made a lot more sense than Mosler, anyway.
If deficits are a good thing, why have any taxes?
To instill value into the currency
You think you're calling their bluff, but MMTers, Thomas Pikkety and others have said that taxes should be understood as a social engineering tool rather than a finance tool. The point of taxes is to punish you for behaviors the regime doesn't like, and to control the flow of resources so that wealth is distributed according to what the regime thinks people deserve instead of according to what they earn through voluntary exchange.
Argentina comes to mind when governments overspend. It doesn’t work to spend recklessly. Inflation is the hole in her argument.
There is no inflation in the U.S. and you've been screaming about the sky falling for 15 years
How can there be no inflation? If you put ten dollars under your mattress in 1980 that ten dollars will not buy you the same goods and services in 2024. The sky falls for countries that print their way out of financial troubles. The US has inflation it’s just not 1000% and crippling society.
@@E2680-l5yThe government aims to have 2% inflation and in reality they have 3%. Big whoopty doo. Can't you make an additional 3% annually?
@@Richest_Person_in_the_World 3% after 50%+... Perhaps you don't understand how compounding works... the effective rate since 2020 is way higher. Just because it went up 50 and then only 3% more of that...
It’s not about what is happening today it is about what could be if governments are irresponsible. Thats the entire argument, she said governments should spend without concern for consequences. There are consequences and examples are countries like Argentina. This isn’t about getting an extra percent return in personal finance, that is narrow minded thinking. This is about policy and the impacts it has on society.
Deficits means the government is diluding the population's spending power and most often also misallocating resources.
No, it means the government has issued more than it taxed. In other words, that you still have leftover dollars as a private citizen
@@Richest_Person_in_the_World No, it means what the above commenter explained. You're just a confused kid.
6 vs 9 might be the most ridiculous argument I’ve ever heard.
She was trying to dumb it down after 10 years of not getting your eureka moment
@@Richest_Person_in_the_World Actually she was trying to dumb it up.
If printing money is no concern or issue, then why do we keep paying taxes?
To make sure the dollar has value to begin with
To drain money out the other end, to limit inequality, to bias for/against certain behaviours
According to MMT, for the same reason some people like to pull the wings off flies.
@@DrBenVincentInequality! Communist detected 🤮
@@Richest_Person_in_the_World
By Stephanie Kelton's logic, the government should tax its citizens above 100% of their income. My god how the money rolls in.
No, MMT argues we are grossly overtaxed
Host, is this channel receiving any financial incentive to put out this video by anyone other than TH-cam advertising (assuming you’re not allowed to chose the advertising, save maybe for eliminating certain advertising categories like Manscapers, etc)?
She already lost me right at the beginning, a six is still a six and a nine remains a nine no matter what angle you look at it. Just because you look at a six upside down, does not make it a nine, that is not how maths works, it the same way that having a 80085 on your calculator does not suddenly give you boobs. A trick of the mind does not suddenly represent reality.
Try is with actual real things, try looking at 6 cows at a different angle and see if you magically get 9, if you claim that people would call you crazy yet some people think MMT is sane.
The story is two people come on a number at the same time from different directions. Which person is right?
@@theBear89451 The person who actually spells out the right number, whatever the number is, a six CAN NOT be a 9 at the same time, that is a contradiction. It can either be a 6 or a 9, not matter what angle you look at it from, but not both.
The angle you view it from is completely irrelevant to whether a 6 is a 6 or a 9
If one is stating otherwise, they are at best performing voodo or at worst they are grifting, but they are NOT speaking truth.
If type a 6 on your laptop, and then turn the display around so it now looks like a 9, does that make it a 9? Of course not, its still a 6, you just have the display upside down. The computer will still interpret it as a 6, if you ad 1 to it you will get 7 and NOT 11 !!!
And the truth is, MMT is BS! They are just Grifters trying to confuse people with a economic sleight of hand (i.e. they are pretending that a 6 is a upside down 9, when it never was), its just designed to confuse people.
Abraham Lincoln once posed the question: 'If you call a dog's tail a leg, how many legs does it have? ' and then answered his own query: 'Four, because calling a tail a leg doesn't make it one,'
lolwut, teach me about the boob calculator trick
@@emperorpicard4901No, they are trying to explain a concept to people, but some are proving Dense
I have a friend that lives in his van. He plans to do this his whole life. He's been doing it for over 30 years. Is he cheating the housing market? He thinks everyone should do this. What is normal for one is abnormal for others. He gets a shower at the YMCA or a health club. Laundry mat for his clothes washing.
When machines do all the work, we will find something else to do. The government spending money they don't have, it's great until it doesn't work anymore. The idea of money was an invention, so now it is being redefined. That is liberal just as a country run by who is elected instead of a king or dictator.
I save in silver or other metals just in case.
And what exactly is the relevance of your Auto Camp buddy to the monetary system?
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.Read more
Let's face it... buying more stocks & index funds during stock market corrections and bear markets is scary. Which makes it really hard to do for most people like me. I have 260k i want to transfer into an s&p but it’s hard to bite the bullet and do it.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.Read more
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.Read more
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
$500.00 for half a shopping cart of food at Walmart in Canada. That's what going off the gold standard and fiat currency have done...
Color me skeptical. It would be $50 here in Europe
@@Richest_Person_in_the_World 🐎 🏒.. its just as bad there. Lying just makes it worse.
@@Richest_Person_in_the_World of course it would 🙄
@@aquious953This summer a cab driver charged me 120 or 130 euros which I felt was too steep, but he was like "No no it's normal." But then I went to the Carrefour supermarket and got some ice cream, fruit etc. and the tab was like 2 euros. It was then I knew he had robbed me blind. Anyway the supermarket bill was not 500 euros as you claimed and used taqiyyah.
@@Richest_Person_in_the_World *Color me skeptical. It would be $50 here in Europe*
That's because your mum does most of your shopping for you. You're just accounting for the cost of candy.
I don't think theres any surprise this thinking would come from the US, the country with millions of overweight people that flock to any drug that will promise weight loss with no exercise or dieting. MMT is the drug that promises pizza and icecream for all without austerity.
@@WynandMeyering Lame
@@Richest_Person_in_the_World you should try a weight loss drug :^) because for some reason exercise and dieting isnt working for you
you're absolutely spot-on. That is the modern American thinking: don't bother checking the nutrition of your soda, otherwise you might see that chugging sodas 24/7 is why you're overweight. Don't bother dieting or exercising, as that requires real effort... instead, just believe what the "experts" tell you to believe.
It seems to me the real complaint here is that MMT isn't deceptive enough!
Compared to the current system of hiding monetary matters from democracy by obfuscating, and spreading misinformation.
This is where the information theory of markets has taken us - to a system of economists and autocrats thinking like PR representatives for the current system.
Isn't this exactly the kind of system due for a Minsky moment?
If Modern Monetary Theory worked, Venezuela would be the richest country in the world. Didn't Zimbabwe try MMT under its dictator, Robert Mugabe? The result: history's greatest hyperinflation.
Nobody said printing money produced real wealth.
However that equation works backwards too: real wealth is not a constraint on printing dollars,
therefore stop saying stuff like "We've run out of dollars."
@@Richest_Person_in_the_World You're clearly unfamiliar with the use of semi-colons with adjunctive adverbs.
@@ngana8755Not sure what you mean, but you certainly dodged the point. If moneyprinting is disconnected from real wealth creation, that only proves the U.S. can pay its bills.
@@Richest_Person_in_the_World Your brain fart makes zero sense. 😂
Gold is to the advantage of the rich. Its never been an advantage to the poor. Gold saves the rich when capitalism takes a nose dive which it does about every 7 to 15 years, and the rich feel little as long as they have their money backed by Gold.
Nothing wrong w/ being rich tho
Gold doesn't save anyone. It's a effectively just a currency that can't be printed to infinity.
Peter Schiff is not a MMT advocate or did I hear him incorrectly?
Schiff 100% anti MMT.
They were saying Schiff was warning of the inflation that was coming and it wasn't transitory
Schiff's weird because he gets and doesn't get MMT at the same time. He for example ackowledges: "I need dollars to pay taxes."
Schiff definitely does not support MMT and doesn't acknowledge anything good about it. Is why lije many others who have staked out positions in the past and resist anything new that might be better.
@@tonysu8860Yeah he opposes it, but also Gets the part where USD is a tax credit. So it is actually bizarre that Schiff as a Dollar Hater actually thinks there "more to it" than what MMT says
Printing money is used supposedly to make jobs, BUT, we know from global experience that when the economy slows down, that hiring people to dig holes and then paying them to fill them in and then dig again and fill again is what China has been doing since 2015 by building over 200 entire cities that are empty. Now, that has caused a massive bubble that is now bursting and is destroying the economy. That’s what the craziness of MMT does.
Yes but MMT explains that the government created unemployment
There is so much straw manning in this conversation from Bob Murphy. You should really get Stephanie Kelton on. That would be a great episode. A remember watching a debate years ago between Bob Murphy and a MMT proponent and Bob Murphy lost badly. It's like his neural pathways are so hardwired to see the world in a certain way that he doesn't have the mental agility to entertain any other perspective. It just doesn't compute for him.
I remember when I came across MMT for the first time after I had been wrestling to make sense of quantitative easing after the 2008 financial crisis. Using an MMT lens suddenly everything makes sense once you properly understand it, and you can't understand it listening to a second hand critique. Of course MMT economists can be wrong. They can make misjudgements like anyone else. But they do have the right framework for understanding how modern money works and not having that understanding can lead to big mistakes in policy making.
Yup!
Yes but back then Dr. Murphy could be excused because MMT was new. Now 10 years later he just looks unintelligent
Totally agree, but with respect to this video and countless others on the internet. The world would be such a better place - and people do better informed - if there was more healthy debate, rather than one side poo pooing the other and vice versa. So I vote for inviting Stephanie onto the show.
Hello. I have to say that you are making a big mistake if you think they the proponents of MMT have a good understanding of the framework of modern money. Refer to my comment made in main chat. In essence they ignore the second side of the creation on money on the banks' Balance Sheet. Thanks
@@scottcincinnatikid9804 Have answered on your main comment
When the interest on the deficit is as much as the the yearly budget than things will go bad
No because they can simply print the interest. Typing $1 and 1T (meaning one trillion) is equal work
@@Richest_Person_in_the_World Which would cause inflation to explode and destroy the US. Thank you for your stupid comment, Professor Sh*t For Brains.
@@willnitschkeAnd yet inflation is muted this year, after you've gone gray announcing a hyperinflation. 😅
@@Richest_Person_in_the_World Professor Sh*t For Brains, that's like saying because the government stole 90% the money in your bank account, it's OK, because they're only stealing a smaller amount this year. 😅
The only thing misleading here is your intentional misrepresentation of MMT. You clipped the most counterintuitive points of MMT and cut out the parts where she explained what she meant.
You said there's "nothing special" about the government compared to Apple. Yes there is! The United States is the issuer of the USD. USD is to the government as United Airlines flight miles are to United Airlines. If United Airlines dumps flight miles on into their market, it would reduce the value of the points only if United runs out of seats to sell. The number of planes they have is the limiting factor. This would equate to productive utility in the US economy. I'm not holding my breath given the other comments in this thread, but I'd encourage your viewers to be more critical and learn MMT from actual modern monetary theorists.
You want to try that again, but this time try to make some actual sense?
"be more critical and learn the subject from the primary propagandists"
So as long as a company has products, they'll never go broke??? 🤦
The United States does not issue USD.
The federal reserve does and it is not publicly owned nor does it provide a reserve.
How can people claiming to understand economics not get this?
@@wzl25 as long as they have products they can consistently sell at a profit then no no they won't. That's how business works
She’s right in that government deficits go into the economy. And those people are the politically well connected who are wealthy to begin with.
So? Rewarding the wealthy is a good idea per Austrianism
The problem is that the deficit spending means that a group of people who has not even been born yet are going to be born with debt to their name, in order to give a kickback to the donor class.
If there were transparency and accountability you could make the case for taxes. But the people who collect the money do everything in their power to make sure there is no accountability nor transparency. The money isn't going to help us as a country.
We shouldn't have a single veteran sleeping on the streets while we give hundreds of billions to foreign countries to fight our proxy wars.
"No tax payers were involved in that process"
We are having to bear the negative externality of higher prices due to the inflation though. These things aren't "Free." Someone is having to pay for them.
That is also a myth, Mosler explains that if our children produce 1000 cars in year 2050, they will NOT have to send them back via time machine to 2020 to pay for anything
@@Richest_Person_in_the_World Mosler says all kinds of dumb shit, so what?
3.59 They will print more money! Inflation eases debt burden. Her whole point was that keeping inflation under control was more important than the debt number.
Inflation doesn't actually ease debt when everyone has to drop the currency to avoid collapsing their own from inflation.
Wow, so much strawmaning here, both in the interview as well as in the comments.
Wow so much arse pain from you. 😂
It's shocking. MMT is not that complicated, though it does uproot a lot of concepts we grew up with. Everyone first encountered paper currency at age 3
@@willnitschke good luck learning about anything worth learning from a TED talk video, much less from a commentary video. As a description of the current macroeconomic system we live in, MMT is spot on. Anyone who says otherwise is referring to a system that is a century old, like the guy in beard is, or just referring to a fantasy island economy.
If she’s right about taxpayers not being involved in the Fiat currency spending then why does the government need to tax anyone at all?
In order for the currency to have value
@@Richest_Person_in_the_World yeah right. 🤣
Too many individuals in finance are shortsighted and self centered to care about the consequences of MMT or other marxist policies
We already have Consequences of MMT not being understood. Namely the shortage of dollars we live in
@@Richest_Person_in_the_World There is no "shortage of dollars" in the sense that we need more of them, Professor Sh*t For Brains.
I'm teaching you another's what Merrill Jenkins has presented in his book and on TH-cam there's not a person on this planet that can out debate Merrill Jenkins
If the number of dollars is $32 trillion and world population is 8 billion, then there's $4000 per person. Arguably not enough
Which arse did you pull 32 trillion out of?
The people in Japan are not wealthier because the exchange rate is around 140 yen to the USD, knucklehead.
idk if you're being sarcastic but people tend to do this magical thing called spending money
Shed bring more value to earth as a sack of bricks
there are economists who have a vested interest is not criticising the present theory. Some MMT proponents go too far, but the basic theory is sound.
It's been my observation that every clueless defender of MMT will tell you it's correct, wonderful, sound, etc. But have no clue what they're talking about, either.
@@willnitschkeMaybe you lack the mental capacity to follow them. Just kidding, not maybe but 100%
@@Richest_Person_in_the_World And you definitely lack the mental capacity to respond with economic arguments, which is why you always reply with arse pain. 😅
Debasement 101
The state and its agents coordinating people, resources, and productive activities towards a unitary objective, requiring they share the same vision and direction. All Stephanie Kelton needs is a mustache and firm hand gestures while she riles the crowd towards its shared future.
She's right...
Murphy should know that government bonds do not provide the government with revenue. Rather, they are US dollars the government already spent that it has not taxed back. The federal government creates US dollars (which is what people mean when they say the government can always "print" dollars). It does not need or use "revenue".
I'm not sure what's wrong with him. Either he's upset about the Mosler debate so he refuses to study or acknowledge Mosler Economics. Or he has tried but isn't equipped
Sorry, this is idiotic. The bonds are purchased using dollars, which are given to the government. 🤣
The MMT crowd don't even grasp the most basic concepts in finance.
@@Richest_Person_in_the_World But Mosler is a self published crank who merely assets empirically false nonsense. Try again.
@@willnitschkeThose dollars originate with the government. So your cycle is wrong, mr. anti-mensa
@@Richest_Person_in_the_World You still make no sense, Professor Sh*t For Brains.
Money just denominates (represents) value. The value essentially never changes, just the amount of money that represents it.
Value changes when you add value, through labor, change in demand, etc.
Correct.
The google analogy shows the guy hasnt understood MMT. the government paid in advance. How little do you need to count as an expert.
It's shocking that Bob as a Ph.D. can't follow this stuff after a TEN YEAR PERIOD of being exposed to it. Or does he avoid giving credit to Mosler because he was unprepared for that old debate
@@Richest_Person_in_the_World Mosler is a self published crank who makes a series of claims backed by nothing but his opinions. Try again.
The National Debt is not our biggest fiscal problem. The country's biggest fiscal problem is a combination of corporate debt and personal debt.
Debt is not a problem so long as it's not bad debt. A lot of personal debt is bad debt, sure. Most of it isn't. Most government debt, however, is.
Stop talking about the federal government is the same as a household or a corporation. That IS stupid.
Because maths works differently for governments! 😅🤣😂
3:40 Absolutely amazing how Bob Murphy still doesn't get it. MMT explains that if the government "owes" $10,000 that is just the other side of your $10,000 checking account. But Murphy shouts: "And HOW do they plan to pay us then??" 🤦♀️
I've just come up with the briefest explanation: The fact that the government has a deficit, is proof that you already got paid.
MMT doesn't "explain" anything. It's just absurd Statist theology.
If the government goes into debt to issue food stamps, there is no asset to balance the debt. The poo in the toilet the next day, is not an asset that can zero the debt.
This stuff is sooooooooooo stupid. 😅🤣😂
@@Richest_Person_in_the_World the government doesnt need to be in debt for me to get paid tho lol.
there's a neat thing called a bond, and it's similar to holding stock in a company. The company doesn't need to go into debt to pay its workers.
@@neuxell You've just totally confused him...
@@neuxellA bond is just a bank account
I don't know if MMT is correct or not but your guest Bob Murphy immediately discredits himself with his initial analogy of Google issuing bonds. One of the fundamental parts of MMT is that when the government issues bonds it issues bonds in its own currency. The government also controls the currency so it can also print money to cover its debts. By printing money the government could cause inflation. That's why there's an emphasis on controlling inflation in MMT. In MMT you control inflation by raising taxes and raising interest rates.
The closest comparison for a corporation is probably Google issuing more stock. Google controls its stock so it can always issue more stock, but by issuing that stock it devalues the stock of the existing stockholders.
So either your guest just doesn't know what he's talking about or he's being intentionally misleading. I find in a lot of these conversations about MMT, the people who are trying to discredit it don't really take it seriously enough to actually study it so they can refute it.
Yes I was surprised that Bob Murphy is this intellectually inept
*That's why there's an emphasis on controlling inflation in MMT. In MMT you control inflation by raising taxes and raising interest rates.*
No there isn't... So the "fix" for the inflation that has crushed poor people in the US in recent years was to raise their taxes? Do they even pay taxes?
Or is the fix to raise taxes on the productive segments of the economy and cause a depression?
MMT theology is completely moronic... 😅🤣😂
@@willnitschke we don't have an administration that is practicing MMT right now. So the poor and middle class are just suffering under the current system.
If you really want to understand MMT then I suggest you read Stephanie kelton's the deficit myth.
Like I mentioned before, I don't know if the theory holds up. I think there are a lot of questions around if the government would actually respond if inflation got out of control under MMT.
But what I see is a lot of lazy responses to why MMT wouldn't work. Especially with so much dissatisfaction with the current system.
@@klf9161 I've looked at. It's nonsense. I have better uses of my time. This stuff is ideology. I'd ask you to ask yourself, why are you taking seriously the incoherent writings of a self published crank (Mosler) and grifters like Stephanie Kelton who is primarily out there promoting this stuff to achieve power and prestige. Now Kelton is no fool, but she's been serially wrong about the economic consequences of her ideas. What's happened in 2021-24 essentially refutes her.
MMT is not modern, and it's not a theory, it is worringly in pratice.
The issue that I think is coming up in this discussion is that MMT descriptively is more accurate than the current view of monetary theory and macro.
Now if everyone full jumped onboard the MMT train I worry the politicians and the fed will not show restraint in spending which would def lead us to the hyperinflation hell most libertarian are worried about.
If you view MMT as a lens there is huge value in understanding and learning it. Sadly this is an issue that will continue because some MMT proponents are so deficit happy that they will be used as the poster child of why MMT is dumb
There is nothing "accurate" or even intelligible about MMT. All I here from its cult members is how wonderful it is, while being completely incapable of explaining why.
Honestly, if you want to cede this ground to the side that would deficit spend to oblivion then stay with that attitude.
How MMT views taxes, debt, inflation, and interest rates is way more accurate then current views of these topics. They also fit within the same framework, the mechanisms are all the same it’s just what each one does that MMT views differently.
Taxes - This is what keeps inflation in check by removing money, it also gives value to your countries currency because you have to pay for it with your own currency. think petrodollars they all had to pay taxes in us dollars
Conventional view is that money printing will collaps the economy and ruin us all, meanwhile if you understood MMT you would know that this feared collapse or “bankruptcy” of our government is impossible and that you should he buying assets like stocks as much as possible because of all the deficit spending.
I can give more examples where mmt is accurate but didnt want to make this post any longer
@@fwuffymilk8369fr Every cab driver for the past 5 years has been parroting "They printin monay" and people still think they are being edgy for saying that
@@Richest_Person_in_the_World I take the views of cab drivers who have real connections with the real economy, over ideological clowns, any day.
they already don't show any restraint, but i see that you mean they'd show even less restraint, and you're right
the few holding them back from going over the edge are the nonbelievers
Unless MMT has a way to reducing inflation without excessively taxing the citizens.
Err... no, it doesn't.
Stephanie Kelton's explanation of how government spending could be inflationary was wrong. Inflation is caused by devaluing the currency, which is done by printing more money. Or, as Milton Friedman put it, inflation is caused by too much money chasing too few goods. How do we get 'too much money'? By government spending that is unconstrained by society's inability to lend or be taxed to cover that spending.
So, why do you want the government to furnish you with a Sound Money. Isn't that similar to everyone else wanting a government subsidy
Mr. Murphy is clearly not intelligent enough to understand the problem. Kelton doesn't say the National Debt is an asset. She says the federal government accrued the debt by providing goods and services to tax payers. The government doesn't owe taxpayers anything. They have already received the goods and services. The government owes the holders of paper, which we can cover anytime we really want.
Sure, the government can continue to issue more debt, until such time that the price of that debt becomes so high, it has no money left to fund anything, not even more debt. Hence forced austerity. What's not to like? 🤣
The tax payers owe the money to the holders of the paper.
@@tgamronNot really, any amount can just be typed in. "Muh where is the government gonna find $1 trillion??" -"Er, here: $1T."
@@Richest_Person_in_the_World Yes, really. Knucklehead. The US government cannot just print money like Zimbabwe did.
3rd biggest spending is on the debt interest
2nd biggest is on medicare/medicaid
1st biggest is on social security
Social Security will be gone in 9 years
Medicare/Medicaid is only used by those too stupid/useless to afford private health (it also fucks with the health market)
and paying off Debt interest doesn't provide a good or service to us
I am not getting how gold can back a currency in today's economy. Total value of the world's gold reserves is $12 trillion? Total value of currency in circulation is something like $300 trillion.
Gold price would have to adjust upward
A currency is a unit of exchange. The units can be large or small. That's not the problem at all.
government's borrowing and printing of money is what causes inflation. how can she expect to keep inflation in checked and still continue with modern monetary theory. impossible
When Obama approved the first trillion dollar deficit in 2009, you were saying the same thing. Now decades later inflation is 2%
@@Richest_Person_in_the_World Inflation has caused a 30% decline in purchasing power. That is not going away, dimwit. Also headline inflation is 2.5%, 50% above target, and core is even higher. But even if it was 0%, the damage doesn't go away. This has been explained to you many times, yet you continue to repeat your stupid here.
@@willnitschkeWhen you were making hyperinflation claims in 2009, you did not say: "I mean cumulatively over 1000 years." You meant inflation in a single year would be high. Now you're backpeddaling because your prediction failed. The reason for the failed predicton being your lack of understanding of the monetary system.
@@Richest_Person_in_the_World Babbling that someone is "back peddling" but being unable to explain the "back peddle" just means you're a sulky nitwit with arse pain, sorry.
What is even more pathetic, is when your bullshit is called out about you conflating rate of change with the level, you actually try to pretend that the rate of change is what's important and not the absolute level. That's like declaring the balance in your bank account is of no consequence, only the current interest rate. Talk about sh*t for brains... 😂
Also, there have been no "failed predictions". MMT style polices were just as catastrophic as mainstream economics predicted they would be.
@@willnitschkeWhen you people predicted high inflation, no way no how was that a claim about inflation being 1.1% per year but over the decades it cumulatively comes out 40%, and voila. No, your clear implication was that inflation would be 200%+ per year
What’s wrong with the woman on Ted’s voice. She sounds nervous 😥
There is nothing "modern" about MMT... We saw this in weimar Germany with massive money printing and bricks of cash needed to buy food.
And yet today in West Germany inflation is low. So MMT wins
@@Richest_Person_in_the_World Professor Sh*t For Brains, that's like someone pointing out that the government stole 90% of your money, but don't worry about it, the theft is more modest at the moment.