"It's now much higher and very evidently out of control."
Only to those that fixate on changing prices as though they should never happen and are a mortal sin.
In reality price is just the market allocating scarce resources to those who can make better use of them.
There's no magic here. We're making less stuff because people have thrown sand in the works due to bureaucratic government restrictions. So who gets to lose out?
We can do it by price, or we can do it by quantity. Pick one.
The "inflation out of control" rhetoric is just PR cover for throwing a lot of people out of work, but trying to get the central bank to do the dirty work, rather than the more awkward job of raising taxes and/or cutting government spending.
Which, funnily enough, is precisely what MMT says on the subject.
"Inflation is the process whereby the government causes higher prices by creating more money either directly through deficit spending, or indirectly by lowering interest rates or otherwise encouraging borrowing. For example, when a shortage of goods and services causes higher prices, a government may attempt to help its constituents to buy more by giving them more money. Of course, a shortage means that the desired products don't exist. More money just raises the price. When that, in turn, causes the government to further increase the money available, an inflationary spiral has been created The institutionalisation of this process is called indexing"
Soft Currency Economics, Warren Mosler, p71
When you start critiquing MMT, always best to understand the source material first, rather then getting your view from Twitter et al. They don't understand what MMT is saying either.
>Only to those that fixate on changing prices as though they should never happen and are a mortal sin.
Inflation is a requirement of a healthy economy. How much is important to debate and should be politically an option to tinker with. Though I suspect many would be afraid to touch it. MMT politicians are more than welcome to jump into the seat if they garner enough support from democracy.
>When you start critiquing MMT, always best to understand the source material first, rather then getting your view from Twitter et al. They don't understand what MMT is saying either.
There's also a reason why MMT died a horrible death in the last several months. The Twitter critiques were right.
In fact I will go so far as to say they were MORE THAN right. The predictions they made that make MMT look bad were under predicted. MMT reality is so much worse.
Only to those that fixate on changing prices as though they should never happen and are a mortal sin.
In reality price is just the market allocating scarce resources to those who can make better use of them.
There's no magic here. We're making less stuff because people have thrown sand in the works due to bureaucratic government restrictions. So who gets to lose out?
We can do it by price, or we can do it by quantity. Pick one.
The "inflation out of control" rhetoric is just PR cover for throwing a lot of people out of work, but trying to get the central bank to do the dirty work, rather than the more awkward job of raising taxes and/or cutting government spending.
Which, funnily enough, is precisely what MMT says on the subject.
"Inflation is the process whereby the government causes higher prices by creating more money either directly through deficit spending, or indirectly by lowering interest rates or otherwise encouraging borrowing. For example, when a shortage of goods and services causes higher prices, a government may attempt to help its constituents to buy more by giving them more money. Of course, a shortage means that the desired products don't exist. More money just raises the price. When that, in turn, causes the government to further increase the money available, an inflationary spiral has been created The institutionalisation of this process is called indexing"
Soft Currency Economics, Warren Mosler, p71
When you start critiquing MMT, always best to understand the source material first, rather then getting your view from Twitter et al. They don't understand what MMT is saying either.