Monday, September 07, 2020

Opinion: Detroit accountant shows that opinions built on ignorance come crashing down

the stupid! it burns!

Richard Drumb disapproves of Modern Monetary Theory. He pretty much trots out every moronic anti-MMT trope. 

Drumb compares the federal government to the city of Detroit, but Detroit cannot create money, and the federal government does nothing but create the money it spends.

No one lends money to the federal government. Why would the government need to borrow money, which it creates? The government does not borrow; instead, it generously offers to pay people interest to take money out of circulation.

We have a lot of economic problems, and the federal government is doing a lot of harmful things. But a violating a non-existent budget constraint is not one of those problems.

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