Comments by "리주민" (@user-nf9xc7ww7m) on "Why can’t governments print an unlimited amount of money? - Jonathan Smith" video.
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Read Stephabie Keltons The Deficit Myth. MMT shows that currency issuers (central banks) are not households as households do not make their own currency (not just counterfeiting, but actually making their own Johnson Bucks or McLeod Quids). Their only constraint is debt to GDP ratio and inflation.
"Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt...
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely and can be fought with policy decisions in the future if required. They often cite the example of Japan, which has much higher public debt than the U.S. [which has been and is currently experience deflation, not inflation].
According to MMT, the only limit that the government has when it comes to spending is the availability of real resources, like workers, construction supplies, etc. When government spending is too great with respect to the resources available, inflation can surge if decision-makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs, etc."¹
Source:
¹https://www.investopedia.com/modern-monetary-theory-mmt-4588060
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Read Stephabie Keltons The Deficit Myth. MMT shows that currency issuers (central banks) are not households as households do not make their own currency (not just counterfeiting, but actually making their own Johnson Bucks or McLeod Quids). Their only constraint is debt to GDP ratio and inflation.
"Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt...
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely and can be fought with policy decisions in the future if required. They often cite the example of Japan, which has much higher public debt than the U.S. [which has been and is currently experience deflation, not inflation].
According to MMT, the only limit that the government has when it comes to spending is the availability of real resources, like workers, construction supplies, etc. When government spending is too great with respect to the resources available, inflation can surge if decision-makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs, etc."¹
Source:
¹https://www.investopedia.com/modern-monetary-theory-mmt-4588060
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@merrychase9744
It's called sourcing. I cited my source. Have you?
As far as theory goes, so is Austrian and kenyesian economics. They are competing theories. Economics is a social science rather than a hard science, making it more difficult to prove a theory (such as gravity).¹
And as far as money goes, japan has done the same thing. Stimulus for covid, bank bailouts, etc. For around a third of the us population, they had spent $708 billion (USD) in just one round of stimulus (per capita equivalency with the US would make that $2 trillion in that round).²
Now, they do have one major difference. There is no housing crisis due to different policies in both investment, house depreciation similar to cars (rather than appreciation), streamlined approval, and very mixed zoning (height based rather than functional based--apartments next to detached family homes and businesses).³ ⁴ ⁵
Source:
¹https://www.economicsonline.co.uk/Competitive_markets/What_is_economics.html
²https://voxeu.org/article/covid-19-stimulus-payments-evidence-japan
³https://marketurbanism.com/2019/03/19/why-is-japanese-zoning-more-liberal-than-us-zoning/
⁴https://www.sightline.org/2021/03/25/yes-other-countries-do-housing-better-case-1-japan/
⁵https://www.rethinktokyo.com/2018/06/06/depreciate-limited-life-span-japanese-home/1527843245
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Read Stephabie Keltons The Deficit Myth. MMT shows that currency issuers (central banks) are not households as households do not make their own currency (not just counterfeiting, but actually making their own Johnson Bucks or McLeod Quids). Their only constraint is debt to GDP ratio and inflation.
"Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt...
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely and can be fought with policy decisions in the future if required. They often cite the example of Japan, which has much higher public debt than the U.S. [which has been and is currently experience deflation, not inflation].
According to MMT, the only limit that the government has when it comes to spending is the availability of real resources, like workers, construction supplies, etc. When government spending is too great with respect to the resources available, inflation can surge if decision-makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs, etc."¹
Source:
¹https://www.investopedia.com/modern-monetary-theory-mmt-4588060
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Read Stephabie Keltons The Deficit Myth. MMT shows that currency issuers (central banks) are not households as households do not make their own currency (not just counterfeiting, but actually making their own Johnson Bucks or McLeod Quids). Their only constraint is debt to GDP ratio and inflation.
"Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt...
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely and can be fought with policy decisions in the future if required. They often cite the example of Japan, which has much higher public debt than the U.S. [which has been and is currently experience deflation, not inflation].
According to MMT, the only limit that the government has when it comes to spending is the availability of real resources, like workers, construction supplies, etc. When government spending is too great with respect to the resources available, inflation can surge if decision-makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs, etc."¹
Source:
¹https://www.investopedia.com/modern-monetary-theory-mmt-4588060
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Read Stephabie Keltons The Deficit Myth. MMT shows that currency issuers (central banks) are not households as households do not make their own currency (not just counterfeiting, but actually making their own Johnson Bucks or McLeod Quids). Their only constraint is debt to GDP ratio and inflation.
"Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt...
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely and can be fought with policy decisions in the future if required. They often cite the example of Japan, which has much higher public debt than the U.S. [which has been and is currently experience deflation, not inflation].
According to MMT, the only limit that the government has when it comes to spending is the availability of real resources, like workers, construction supplies, etc. When government spending is too great with respect to the resources available, inflation can surge if decision-makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs, etc."¹
Source:
¹https://www.investopedia.com/modern-monetary-theory-mmt-4588060
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