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MMT politically correct but misguided.

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  • Chet Ruminski
    2016-07-25 12:29:50 PM
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    Deficits are the key to an economy but not the MMT way. The economy sustaining deficit is the one made by a company with labor to produce a product. The payments to that deficit go to the people gifted with the talent to handle it. The workers that spend it. That is an economy.
  • Carlitos
    2016-07-25 01:29:45 PM
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    That's called investment spending.
  • Chet Ruminski
    2016-07-25 03:34:53 PM
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    Investment spending capitalizes the business. Workers wages are a liability, a deficit. Companies borrow against earnings or take money out of earnings to pay workers. The is an ongoing process that creates an economy. The only involvement with government is for law and order. Law to penalize or eliminate illegal investing. Order to prevent abuse between parties.
  • Carlitos
    2016-07-25 09:17:47 PM
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    Liabilities are not necessarily deficits. They are like futures contracts to take delivery today, but pay tomorrow. That doesn't mean the entity is spending more than their income per se. If I earn and keep a $5 bill in my wallet and borrow $3 from you in singles because the shopkeep doesn't have change for something that costs $3, I'm not deficit spending. My income is $5, I've only spent $3, and I'm up $2 dollars in unspent income. You have $3 "saved" with me and my liability to you is $3.

    In any event, your "night watchmen" like comments about the role of government are disturbing. This is a Democratic website in case you didn't know. Most of us believe government exists to serve public purpose, not merely "law and order" in a generic sense. Even the worst and most disgusting neoliberal members of our party admit as much.

    Government is a driver of investment spending, both in terms of what investments are made and by how much.

  • Chet Ruminski
    2016-07-26 12:41:33 AM
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    "They are like futures contracts to take delivery today, but pay tomorrow"
    If you think there is any similarity between liabilities and futures contracts then I'll apply that to whatever thinking you have to paraphrase my reference to government's involvement to regulate business as disturbing. Or what in the world are you talking about? Are you saying that the Democratic Party is opposed to government regulating business? To draw an unrelated conclusion like you did I would have to say what you are inferring is right wing conservatism? But it is purely entertainment to me "disturbing"!!!
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