The growing split between progressives and party leaders on deficit spending could define the party’s future. Once people figure out exactly how money works – that when the government spends more than … Continue reading As the progressive push for big spending grows, so does the Democratic divide on the deficit
We need to talk about taxation. I do not think it means what you think it means. In countries whose governments issue their own currencies, taxes do not pay for federal services. Governments like those of the US, UK, China, Australia, Canada, etc run spend & tax economies, not tax and spend. … Continue reading What are taxes actually for? – Claire Connelly
James Galbraith says academic economics is in need of radical reform. The University of Texas economist outlines how the profession has become “self-dealing”—creating a tribal and restrictive hierarchy through journals and university … Continue reading Academic economics is in need of radical reform
Americans, particularly young Americans, are starting to question the assumptions that underlie some policymakers’ categorical opposition to federal government borrowing. For those hawks who make politically motivated forecasts of doom for the US’s fiscal health, it may be their own credibility that ends up paying a price. Because the threat of doom … Continue reading Fiscal hawks’ tales of doom do not fly with the young
Are finance types really going to make us fight this battle for the rest of our careers? The government doesn’t operate like a household. When will people learn? Source: Twitter investor says … Continue reading Twitter investor says US government is bad at managing its finances | FT Alphaville
Once an outsider, her radical economic thinking won over Wall Street. Now she’s changing the Democratic Party. Kelton’s core idea is that the government can’t run out of money or go bankrupt, … Continue reading Stephanie Kelton Has The Biggest Idea In Washington
“The dirty secret of almost all government is that we don’t know whether we’re doing the right thing.” Does evidence-based policymaking help government make better decisions, or is it a waste of … Continue reading Evidence-based policymaking: is there room for science in politics?
A good listen where you learn: The expected effects of the new tax policy The reason why governments issue bonds instead of just printing money Why the size of the budget deficit … Continue reading Stephanie Kelton explains how the government budget affects the economy and the mechanics of student debt forgiveness
Everyone knows governments need to tax before they can spend. What Modern Monetary Theory presupposes is, maybe they don’t. The concept is not really as radical as you think, it actually describes … Continue reading The Radical Left-Wing Theory That the Government Has Unlimited Money – VICE
IT might make you feel better but tomorrow if the US Federal Government, or Australia or the UK repaid the entirety of its national debt, it would make not one dollar’s difference … Continue reading What if every government paid off its national debt?
A morally odious theory is empirically unsupportable and increasingly questioned by a younger generation of central bankers. Expect politicians to make more noise about the Fed’s controversial choices after Yellen is gone. … Continue reading NAIRU: not just bad economics, now also bad politics
Paying people to work would be a more direct—and less expensive—way to lift them out of poverty. If the federal government really wants to harness the benefits of employment to improve beneficiaries’ … Continue reading Work Requirements Won’t Improve Medicaid. A Jobs Guarantee Might. – The Atlantic