It makes sense as a different way to conceptualise the government’s budget constraint—limited by inflation (or the maximum sustainable level of seignorage) rather than an ability to borrow per se.
I just think analysing matters that way won’t show that the government can spend a significant amount more than it does today, without higher taxes. There isn’t lots of latent productive potential in the economy right now that could be unleashed, if only there were more spending. If that’s correct, that makes it a much less interesting idea.
If that’s correct, that only makes it a much less interesting idea at the recent circumstances. But as soon as these circumstances change, MMT gives an important insight in the constraints of governmental spending. (The real resources, available in the economy and not the deficit)
It makes sense as a different way to conceptualise the government’s budget constraint—limited by inflation (or the maximum sustainable level of seignorage) rather than an ability to borrow per se.
I just think analysing matters that way won’t show that the government can spend a significant amount more than it does today, without higher taxes. There isn’t lots of latent productive potential in the economy right now that could be unleashed, if only there were more spending. If that’s correct, that makes it a much less interesting idea.
If that’s correct, that only makes it a much less interesting idea at the recent circumstances. But as soon as these circumstances change, MMT gives an important insight in the constraints of governmental spending. (The real resources, available in the economy and not the deficit)