“Crowding Out” of the Private Sector
Cullen, correct me if I’m wrong, but under MR there is no “crowding out of the private sector” when the Treasury borrows or is that merely only relative to when the Fed monetizes the debt issued by the Treasury? Under MMT we know its all a rigged game between the triumvirate and there will never be an auction failure, though my reading of history is that this is due to a major, embarassing failure in the early 70’s, not because of MMT.
Most, if not all, of the left-wing budget projection models I’ve seen ignore measuring supply side effects (i.e. dynamic scoring) and — incredibly — use the fiscally conservative “crowding out of the private sector” excuse for why revenues will decrease and the national debt will skyrocket. That all reeks very much of finding the ideologically-correct answer you want (i.e. anti-Trump or anti-Republican) by manipulating or omitting the data you don’t like.
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