Quantitative Easing, however applied, should not cause runaway inflation; Modern Monetary Theorists told you that way back, and have been proved correct
The Furlough, money for the poor, money injected at the lowest point of the economy, tends to be spent and returns to the treasury as taxes well within a 12 month period, hence there is no money flooding the economy; Modern Monetary Theory predicted that there would not be
Not to inject money at a time when there are goods left unbought and labour unpurchased leads to stagnation and an economic downturn; Modern Monetary Theory explains how and why this is
Modern Monetary Theory has correctly predicted that Quantitative Easing would not lead to an increase in bank lending
Making money available for ordinary people, raising wages so that people can work fewer hours and have time to spend their money is not the same as ‘printing money’ and releasing it indiscriminately into the economy; Modern Monetary Theory shows why this isn’t the same as giving everybody, rich and poor, a Universal Basic Income
Allowing government money to go directly to those without enough doesn’t add net financial assets to the economy; Modern Monetary Theory explains how ‘new money’ given to the poor, through a job guarantee, or the raising of the Living Wage, returns to source as taxes within 12 months, or else becomes personal savings, contingency funds, pension provision or some other way of removing it from the economy
Modern Monetary Theory says that when a Sovereign Nation’s Central Bank begins to reduce the size of its balance sheet, it does not result in financial collapse; it is dangerous for a government to run a surplus, as that leads to financial crisis
Many people still think that Modern Monetary Theory is some kind of ‘Left Wing Device;’ if this is so, then Rishi Sunak (the wealthiest of the UK’s MPs, married to a billionaire’s daughter) seems to be in on it. It’s not an agenda; rather an explanation of how macro-economies work, what it is that they do, why they do it, and what else is possible without breaking the piggy bank. Many on the Left refuse to consider MMT, meaning that the political Right can take any action they see fit while socialists and not-quite socialists worry about ‘paying back’ the ‘loan’ in increased taxation and cuts to services. Austerity is a con trick, which has nothing to do with the economy and much to do with a political agenda hell bent on eventually putting public services into private clutches. All Money is Government Debt; it says so on the banknotes.
Click here for a secure way to sign up, you will be supporting independent news. Click the button below.
Disagree with this article? why not write in and you can have your say? email us