Thread for the discussion of Modern Monetary Theory and Post-Keynesian Economics
Q: What is Modern Monetary Theory
A: MMT is a macroeconomic theory that explains how modern monetary systems work, and argues that governments with sovereign, fiat currencies can never run out of money. It also argues that deficits are not inherently bad, and that government spending can be used to achieve full employment and other public goods.
Q: What is Post-Keynesian Economics?
A: Post-Keynesian Economics is a school of economic thought that is critical of mainstream, neoclassical economics. It builds on the ideas of John Maynard Keynes and argues that the economy is inherently unstable, and that government intervention is necessary to stabilize it. It challenges the beliefs of neoclassical economics that markets are rational and self-regulating, and attempts to bring back sanity (empiricism) into a discourse that has become voodoo
Q: Why should I as a leftist care about these things?
A: Two reasons. Firstly, it undermines the right-wing narrative of barter economics as the historical basis for economics, whereas in fact the state has always been the monopoly issuer of goods. Secondly, governments and politicians are constantly attempting to gaslight the populace that we cannot 'afford' certain things, and we have some of the most economically illiterate people on the planet running the economy.
Q: But it's not SOCIALIST
A: Look, it's just a description of how the economy as it is currently works, not prescriptive. There are plenty radical leftists who believe in these ideas, it can enrich discourse. Just think of it as another tool in your toolbox when it comes to debunking right wing nonsense.Post too long. Click here to view the full text.