www.pragcap.com
That nine-year-old article feels like it's deliberately misrepresenting what proponents of MMT say it should do. The practice (it's not a theory, it is used all the time) is not new and is in use already. What do you think quantitative easing is? Where do you think the USA gets its military budget from - not from taxes, they just create the money. Likewise with the 200 billion covid package our government brought in. Where did that money come from? Thin air.
No one is saying governments should flood the system with so much money that money becomes worthless. They are saying that when required, when it will help, they can and do create money to stimulate the economy, stave off recession and keep confidence in the system. There is already not enough cash for all the money there is - i.e. if everyone wanted to turn all their wealth to cash, they couldn't - that's why a run on the banks is a disaster. Austerity in a recession turns the porch light on, warms the hearth and invites that disaster in the front door.
The point of the article I posted is that the idea that we are burdening our grandkids with some unpayable debt is wrong. As long as the economy grows faster than the debt, the relative size of the debt decreases over time. Debt used to facilitate growth is good. We could have full employment and build all the infrastructure this country needs for the next 50-100 years (i.e. take advantage of historically cheap debt to invest in our future, for massive dividends down the track), but this government, which has more than doubled the national debt in seven years and was taking the economy into its first recession in 29 years even before covid, is going to make things worse purely for ideological reasons.
A couple of good vids to watch:
