Everyone likes free stuff.
It turns out governments cannot go bankrupt spending their own currency. Heck they don’t even need taxes (taxes are mainly useful for creating demand for government currency).
Erudite professors with vast bodies of knowledge are now teaching post-Keynesian policy that it’s OK for governments to spend money with abandon, and that deficit spending caps are an annoyance that should be abolished.
These brilliant teachers certainly are not stupid. So if we cannot excuse them for making mistakes, then what are they up to, or is deficit spending really a panacea?
Since there will always be funding available for economic research, papers, books, and promotions benefiting the financial elite, let’s see what they are up to.
The “foreseen” consequences are:
- Bigger bureaucracies feeding off the windfall with more promotions, pensions, and people (coincidently a solution to unemployment proposed by MMT)
- An invisible tax on wages and savings through inflation
- Indebting governments to banks, risking pensions, reserves, and national assets
There are plenty of warnings about indebtedness, but what can we do about it.
- Direct democracy. We cannot fix spending without first fixing the way laws are enacted
- 100% reserve requirement, so that banks cannot inflate the currency supply
- Autonomous money, where we take responsibility and control of our own money