One of Warren Buffet’s close friend Bill Gates (a 1%er) a man who is spending the rest of his life and his money trying to help the poor calls FAKEMMT “Crazy talk!” He is right.
No one disputes that deficits are necessarily bad. They are not, but they can be if misused, such as, free stuff to all. The #FAKEMMT perscription to fix all of humanities problems. The poor, unemployed, Global warming, recessions, depressions, market corrections, infurstucture, health, you name it, MMT’s “just print print print and print some more” can fix it.
The reality is that is economic voodoo. Gov’t deficits = profit savings to the top 1%. Like Mr. Gates and the Buffet’s of the world. Marketed by FAKEMMT as “OUR” savings. Why “OURS”? Because we happen to be a part of the private sector. But any fool on the street can tell you that deficits have not produced “OUR” (bottpm 95%) savings. Instead it has produced “THEIR” (top 5%) savings. No one denies inequility. Not even the Bill Gates of the World.
Despite this obvious fact of life, FAKEMMT continues to pretend that deficits are “OUR” savings and we just need more of it! Without regard to productivity that actually values a currency. They call free printed money to those who show up to punch a card a “JOB” they call Taxation the value mechanism of a currency. Well let’s look at the real World. Could Venezuela simply tax more to stop hyper inflation? Surely by MMT teachings that must be the case. Same in Argentina, Turkey, Zimbabwe. All of them simply did not tax enough according to FAKEMMT.
Now let us take a look at Middle Eastern countries. They dont tax at all. Yet their currencies are just fine! But once again according to FAKEMMT that should not be the case. They should all be hyper inflating. So you see the problem with FAKEMMT? What they prescribe (and often flip flop to avoid embarrassment by calling it what it is a discription.) Does not jive with real world economics.
The reality is this. Their is nothing Modern about printing in excesses. We have known this since the 1930s and that is not a theoretical either. Public debt has soared to $22 trillion. Is that modern or theoretical? Of course not. What is modern and theoretical is the marketing of increasing deficits to $4 trillion or 20% of GDP per year doubling the public debt in 5 years and the value of the currency will not collapse, outsource endless jobs and import from other economies around the world because it is a benefit according to FAKEMMT. Fill the void of unemployment by people showing up to Govt and saying hey I want a job for $31,000 per year with full benefits to do work for the public purpose not private. Which is obviously vague and open ended.
So imagine an America where most people are planting flowers, scraping gum off the sidewalks, giving free yoga classes on the park and importing just about everything. As long as we tax we will maintain our economic super power status and the value ofnthe currency. Obviously a rediculous utopian idealogy. But hey! That is FAKEMMT “Modern Theory.