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MMT Criticism

Has a MMT advocate ever responded to your MMT critique? If so, can you point me in the direction of it?

I've never seen a response to my critique. But how could they respond? Everything I write in that critique is true. The govt really does "fund" itself by needing willing counterparties. The govt obviously doesn't cause unemployment. And the Job Guarantee is, at best, a totally unproven program for controlling inflation AND unemployment.

There's nothing I say in my critique that is even that controversial. So, I suspect they don't respond to it because they know it's mostly accurate and they can't refute it.

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche

Thanks. It's strange that MMT is catching on with some people. The whole theory basically amounts to "print money until inflation becomes a problem, but we don't have a way of knowing when that will happen."

Odds seem high that MMT will get more popular as the 2020 elections get closer.

There's more to MMT than govt spending and running deficits. They have some interesting concepts and their purely Post-Keynesian overlaps (endogenous money, etc) are important to understanding how the economy operates. But it is really a buffer stock of employment theory at the end of the day. The core insight of the theory is the Job Guarantee and using a JG to control inflation while maintaining full employment.

The theoretical stuff is where it goes wrong. They theorize that "taxes drive money". They theorize that govt causes unemployment. They theorize that govt spending is "self financing". All of this theory is designed to convince people that the JG is a smart policy. And while some of this theory is interesting, it's also largely wrong or misleading.

"Pragmatic Capitalism is the best website on the Internet. Just trust me. Please?" - Cullen Roche