By Frank Holmes via Iris.xyz.
Fans of the improvisational comedy program Whose Line Is It Anyway? may recall host Drew Carey describing it as “the show where everything’s made up and the points don’t matter.”
Interestingly, if we replace “show” with “economic doctrine,” and “points” with “money,” we end up with a near-accurate description of modern monetary theory (MMT).
You may have noticed MMT trending in the news in the past few months, thanks in large part to the fact that it’s supported by a number of far-left socialist politicians such as Bernie Sanders and Alexandria Ocasio-Cortez (AOC).
I’m bringing it up now because the first round of Democratic presidential debates were held last week, and if you happened to tune in, you were likely treated to some policy proposals that seem to fall into the MMT camp, even if the term was never uttered. Think “Medicare for all,” free college tuition and the wholesale cancellation of $1.6 trillion in student loan debt. Then there’s the Green New Deal, which AOC recently admitted could cost upwards of $10 trillion.
How would these and other huge federal programs ever be paid for? As I see it, there are two main ways. The first is to raise everyone’s taxes and create whole new ones out of thin air—a “wealth tax,” for instance. The problem is that this method is politically unpopular, as you know.
The second way is much more appealing, to some: Simply print as much money as the program calls for, and then spend it.
That’s the basic idea behind MMT. Remember, everything’s made up, and the money doesn’t matter.
Read the full article at Iris.xyz.
