Ep. 25 Discussing MMT Through the Eyes of a Socialist
Bob shares an interview he did on C. Jay Engel’s podcast, “Austro-Libertarian,” where they discussed Doug Henwood’s critique of MMT that ran in the socialist publication, Jacobin magazine. Henwood’s article was an excellent summary of the academic roots of MMT, and thus supplements the pragmatic discussions (from the perspective of Warren Mosler) that have recently been featured on the Bob Murphy Show.
Mentioned in the Episode and Other Links of Interest:
- Bob’s interview with C. Jay Engel on his podcast, Austro-Libertarian.
- The Jacobin article by Doug Henwood, criticizing MMT from a socialist perspective.
- The Bob Murphy Show episodes 18 and 24, which both deal with MMT guru Warren Mosler.
The audio production for this episode was provided by Podsworth Media.
About the author, Robert
Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.
With the how state spending works thing, from listening to the interview from the earlier episode, I think what MMT-ers are saying is that it is the more sensible *perspective* to think that when a modern state spends (or lends) money, it creates and circulates it, and when it taxes; borrows (or otherwise receives money) it removes and deletes it. So I imagine they think states currently insist on observing the superstitious ritual of balancing the two operations in fiscal policy, when really, they should free their minds and do whatever is best for the economy!
What foreign businessman would want to buy/hold such a volatile currency?
MMT means autocracy; pple won’t be able to import goods (unless by force; send the army out to steal the resources it needs to make weapons)
Trump wanted a wall made of concrete; BS & AOC want a wall that’s at least as concrete.
Trump wanted to keep people out; MMT’ers want to keep people in, Berlin wall-style.
Of course I meant autarchy, not autocracy.