MMT Explains What Governments Can Do. It Is Not A Proposal.

This post originally appeared at We CAN Have Nice Things.

At Business Insider, Jim Edwards and Theron Mohamed do a good job explaining MMT in, “MMT: Here’s a plain-English guide to ‘Modern Monetary Theory’ and why it’s interesting.”

They begin with these bullet points:

  • MMT is a big departure from conventional economic theory. It proposes governments that control their own currency can spend freely, as they can always create more money to pay off debts in their own currency.
  • The theory suggests government spending can grow the economy to its full capacity, enrich the private sector, eliminate unemployment, and finance major programs such as universal healthcare, free college tuition, and green energy.
  • If the spending generates a government deficit, this isn’t a problem either. The government’s deficit is by definition the private sector’s surplus.
  • Increased government spending will not generate inflation as long as there is unused economic capacity or unemployed labour, MMT proposes. It is only when an economy hits physical or natural constraints on its productivity — such as full employment — that inflation happens because that is when supply fails to meet demand, jacking up prices.
  • MMT proponents argue governments can control inflation by spending less or withdrawing money from the economy through taxes.
  • Needless to say, traditional economists have some issues with all this.

Just ONE quibble with that, where they write, “It proposes governments that control their own currency can spend freely.” They should have written It EXPLAINS, not that it “proposes.” Big difference.

MMT EXPLAINS that governments that control their own currency can do a lot of things.

The Lockdown

The “lockdown” that started in March was intended to “flatten the curve” so hospitals didn’t get overwhelmed. This would “buy time” for the federal government to get containment measures in place – testing, tracing and isolation – so we could reopen the economy. The “stimulus” was to help businesses and people get through that time.

But the federal government didn’t get containment measures in place. The terrible history of what happened instead will be remembered.

And now the virus is spreading out of control, the stimulus is running out and tens of thousands of us are dying.

No one knows where this will go. It is just a horrifying situation.

Elections have consequences.

Means Testing Sucks

In a democracy government should be for everyone equally. If we’re going to have a program just give it to everyone, not just a few people. Limiting like that breeds resentment, of course, but the resentment is the correct reaction because limiting like that is just wrong.

It’s humiliating to have to prove you are poor enough to qualify for a government program, plus the masses of forms you have to fill out require huge bureaucracies to check. There is an assumption you’re trying to cheat. Means testing also sets up people to be ostracized as “Takers”. It tells the non-poor that the government is not for them, they just have to pay for it.

I could go on.

No wonder everyone hates the older generation of Democrats. Well-meaning, but they did this. Social Security, Medicare, even roads and bridges should have been the guide. Everyone deserves the things government does to make our lives better.

We Need Regulation Compliance Assistance Agencies

Along the lines of the voter assistance agency idea I posted the other day, here is something that I’ve wondered about since I had a business.

Government makes rules and regulations to protect the people and environment. But the compliance can be difficult and cost money. So people responsible for operating a business are left in this situation of not just having to run the business but also having to deal with all of that, too. It really can be “burdensome,” especially for smaller businesses.

Shouldn’t governments that regulate also have a function like some kind of Regulation Compliance Assistance Agency? The mission would be to help businesses comply and even assist with the costs if needed. The agency would send people familiar with the regulatory environment and requirements into the business to do the work and interact with the regulators until the job is done. They would help with any compliance costs in cases where the business was not intentionally cutting corners.

If the idea is that we need regulations to protect people, then clearly this would further that idea by getting the businesses complying as quickly and easily as possible? Why just put out some rule and then expect all the businesses to fix problems on their own. This necessarily creates anti-govt resentment.

It’s a win-win. The mission to get the public protected is achieved. Businesses are stronger for it. People can appreciate that govt is supposed to make our lives better.

We Need A Federal Voter Assistance Agency

This post originally appeared at Imagine Democracy.

We need a Federal Voter Assistance Agency.

The Federal Voter Assistance Agency’s mission would be to reinforce democracy by getting every citizen registered and empowered to vote. This would include helping people get registered, helping them vote, and helping people overcome suppression efforts like Voter-ID laws.

The agency would conduct outreach, even door-to-door, to let people know they need to be registered, hep them register, and help them vote.

The agency would also fight voter suppression by doing things like helping people in voter-ID states get the correct ID. This would include an online service to get valid birth certificates and everything else people need (for free) to get the necessary ID in their state. For those who can’t get things like birth certificates for various reasons the agency’s mission would include doing the research necessary to get birth documentation to get their ID. (Free, as a service to democracy.)

An idea like this couldn’t get through the Senate NOW (nothing Democrats pass can), but it educates the public about the possibilities of government being on their side again.

It also puts it out there for when Democrats do have the power to pass it.

Democracy and Corruption

I wrote this in May, June 2017 but it was never published. I’m getting around to posting it now.

How Did Trump Happen To Us?

How did Trump happen to us?

We are experiencing a shock and awe attack. Every single day we face a flood of terrible things being pushed at us so fast that we do not have time to react. Our system and commons and norms and standards and protections and rule of law are rapidly being dismantled. We are overwhelmed, exhausted, our spirits wear down, we don’t know what to do. Worse, the country risks normalization and eventual acceptance of the cruelty and insanity coming from the top.

Will we get out of this? With the nuclear codes in the hands of a crazy, egomaniacal, racist, malignant narcissist, will we live another year? If we’re alive will we be in jail?

Continue reading

Who Are We To Object To What Putin Is Doing?

There are people who say, “The US has been and is doing bad things all over the world. It interfered with Russia’s elections. It bombs people. It overthrows governments.” Etc.

The United States interferes with elections in other countries. It has overthrown governments in other countries, bombed and even nuked other countries, supported brutal regimes, etc. It has committed genocide against Native Americans, held slaves, enforced an apartheid, made people of color second-class citizens, fought unions and kept wages low, allowed terrible environmental destruction, tortured people … and done a lot of things we are all against.

In general that United States has done everything it can to keep We the People here and everywhere down and under the thumb of a wealthy few.

So who are we to object to what Putin has done and is doing?

Wait, Did WE Do That?

But is that United States that does those things OUR country? Did “we” do those things?

The instances of the US doing these kinds of things here and elsewhere have been when our democracy is undermined, corrupted, manipulated by anti-democracy moneyed interests for their own gain.

That isn’t “US.”

The United State is under the control of a wealthy few anti-democracy plutocrats who OPPOSE what the “We the People’ Constitution stands for. That is the bad version of the United States that progressives fight, now and historically.

Trump is the leader of THAT United States and he is aligned with Putin to make things even worse for We the People.

WE did not go to war in Iraq, we were against it. WE are not helping Israel suppress the Palestinians, we are against that. WE are not helping the Saudis bomb Yemen, we are against that. WE did not support apartheid, we fought it.

We the People of the United States have not decided we should do these things. We the people just want a better life and the freedom to make our decisions over how our government should operate – and every time that actually happens things get better for people, more equal, more just.

What Trump was and is doing — with Putin’s Russia by his side — is to further promote this very undermining of the “We the People” democracy that we fight for.

There Are No Real Republican “Deficit Hawks.” Here’s Why.

Democrats are making a terrible mistake fighting the Republican tax cuts by saying they add to the deficit, that they will “blow a hole in the budget,” etc.

Why are Democrats saying this? They are using the “increase deficits” line because they think they can appeal to a few “deficit hawk” Republicans who spent the Obama years complaining about government sending and “deficits.”

It is a mistake for Democrats to think they can “get Republican votes” by mouthing Republican deficit-fear rhetoric without understanding the strategy behind their rhetoric.

Strategy: Republicans Create Deficits, Stoke Deficit Fear, Then Campaign Against Government Spending

Here’s the thing. There are no real Republican “deficit hawks.” Republicans stoke deficit fear, and then say they are opposed to budget deficits. But they always, always increase deficits. On purpose. There’s a reason.

Continue reading

Trump Destruction, For The Record

No help for Puerto Rico? No science at the EPA? The State Department dismantled?

The destruction is the POINT.

Trump sent the following email this week:

Friend,

TIME Magazine thinks this is an ATTACK against me?

“How Trump’s cabinet is dismantling government as we know it.”

Good! The federal government is a broken, lobbyist-infested cesspool of corruption that abuses its power, cooks deals for crooked politicians, and despises hardworking Americans.

America didn’t vote for the same old thing. You voted for a wrecking ball to obliterate the status quo and rebuild a new government OF, FOR, and BY the PEOPLE!
But the swamp is revolting! That’s why it is so important now more than ever for you to accept your 2017 Sustaining Membership BEFORE MIDNIGHT TONIGHT.

The Fake News Media will do anything to try to rip apart the strong bonds of our movement. But they will never succeed — because we are fighting to save our country, and that’s a fight we will NEVER surrender.

I hope to see your name on our next list of 2017 Sustaining Members before midnight.

Please contribute $1 to accept your Sustaining Membership.

Thank you,

President Trump Signature Headshot
Donald J. Trump
President of The United States

He brags that he is a “wrecking ball.”