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The government has unlimited money

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    This article in Vice caught my eye, so I share it to let Carlitos provide his informed critique.

    Vice, February 27, 2018: The Radical Left-Wing Theory That the Government Has Unlimited Money

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    Thanks for posting.

    It’s a great article but bad title.

    MMT’ers wouldn’t say MMT is radical or left-wing.

    I think MMT exposes that the left and right are on the wrong policy side of their own stated ideologies. According to Mosler, MMT can claim to be truly libertarian because MMT helps to reveal the real size or cost of government and the effects of obscured govt behavior/policy.

    In any event, calling MMT left wing ignores the contribution and participation of conservatives, libertarians, and austrians in the broader online community.

    MMT is the scholarly work of academics. It’s normative conclusions just are. They are not about ideology, but what is.

    From those normative conclusions, self evident positive policy recommendations emerge.

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    Yes when I saw the provocative title I thought the article would be attacking MMT. Just the opposite. And it is well written in its explanations.

    You have discussed all the issues brought out in the article at some time or another. I think our only area of minor disagreement is what constitutes full employment. It's kind of like filling up a bag with rocks. It might appear full but if you shake it up and move it around again you can squeeze in a bit more. Add a little water to redistribute and compact the rocks and you can get even more in.

    Likewise for employment if you move the people around the country a bit more you can employ a few more. Give them training and education and you can add even more. But moving the unemployment below 4 percent is much more difficult than going from 8 to 4 percent. Reducing the 4 percent to 0 percent will also require some kind of job guarantee.

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    As Mosler teaches it, the initial function of taxation is to make everyone unemployed in terms of the thing needed to pay taxes. So its government that creates the things we call "unemployment" and "employment."

    Without a JG, 0% involuntary unemployment is only achievable under rare, coincident circumstances and conditions.

    So we need an effective Job Guarantee to get to 0% involuntary unemployment of anybody able and willing to work.

    This is ultimately about how you define, in practical measure, the thresholds of the ability vs disability to work and the willingness and non-willingness to work.

    So a Job Guarantee has to define itself by answering:

    How far is it reasonable to require JG workers to travel? How will they get to the JG center and job sites?

    How many job choices should JG workers be offered?

    If the infrastructure and further public agency exists to support a job offer to anyone able and willing to work, we can then define involuntary unemployment at 0%.

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    Both of you guys, I guess all of this is no longer important; the "end" of the USA is near anyway, as long as the "idiot" stays in power. Implementing "tariffs" on imported goods will create "trade wars". On top of that we are in the middle of a "weapons" war with Russia. Of course Trump wants our "military" to have the same or better "goodies" than Russia or China; such will cost us dearly; thus no more money for social things, let alone infrastructure etc. The only path will be the same as in Venezuela. There is no way out, unless someone with "brains" gets into power here. If Pence does the follow up forget it as well. Amen