Fri Nov 9, 2012, 05:26 PM
PETRUS (2,756 posts)
An MMT Fiscal Responsibility Narrative
Read the whole thing here: http://neweconomicperspectives.org/2012/11/an-mmt-fiscal-responsibility-narrative-some-truths-after-crowd-sourcing-revision.html
"A fiscal policy that measures its success or failure in reducing deficits, rather than by its impacts on public purpose, is fiscally irresponsible and unsustainable. The deficit is a meaningless measure because the US Government has no limits on its authority to create/spend money other than self-imposed ones, so neither the level of the national debt, nor the debt-to-GDP ratio can affect the Government’s capacity to spend Congressional Appropriations at all. Also, a deficit/debt oriented fiscal policy ignores real outcomes relating to employment, price stability, economic growth, environmental impact, crime rates, etc. which actually can affect fiscal sustainability by strengthening or weakening the underlying economy, and, with it the legitimacy of the Government and its fiat currency."
"Social Security has no solvency or “running out of money” problems. The SS crisis is a phoney one. No solution to this “fiscal crisis,” bipartisan or partisan, is needed. What is needed is a solution to the political problem of getting SS’s funding guaranteed in perpetuity by Congress..."
"Austerity requiring budget surpluses cannot work in the United States economy because surpluses, defined as tax revenue exceeding spending, destroy net financial assets in the private sector. Unless these financial assets are replaced through revenues acquired by running a trade surplus; the continuous loss in net financial assets by the private sector is unsustainable, eventually leading to credit bubbles, recession or depression, and the return of deficit spending. It is mathematically IMPOSSIBLE for the USA to simultaneously run a government surplus, have a trade deficit and increase aggregate private sector wealth!"
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An MMT Fiscal Responsibility Narrative (Original post)
Response to PETRUS (Original post)
Sat Nov 10, 2012, 07:09 AM
fasttense (15,050 posts)
1. The debt crisis bogeyman is firmly implanted into
our minds by ignorant RepubliCONS.
There is NO federal debt crisis. It's made up in order to cut spending for the working and funnel it to the rich. Just 4 years ago, we had a Vice President who said deficits don't matter. He was right.