MMT for lay people
This represents a pretty thorough chain of MMT for lay people.
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
uzt. 8
To my new followers, you may hate money. You may want a RBE or a gift economy. You may think Bitcoin will save the world. I am focused on working class analysis of how the monetary system actually functions sans any tropes. The base. Below is my pinned post. Something for everyone
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Some basics.
The US Dollar is a tax credit. It is a unit of measure.
You can’t run out of inches
You can’t run out of numbers
The government can’t run out of dollars… unless it purposely, politically chooses to.
Thread 1/x
poo
Since the US Dollar is a mere tax credit and a unit of measure, it is neither precious nor permanent.
A dollar is an IOU.
When it is spent into existence a debt is born.
When it is taxed out of existence a debt is washed away.
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
All money is debt. So reducing the national debt means reducing the national money supply.
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Dollars are not reused
A dollar is spent once into existence.
It circulates within the economy
Is destroye once it is returned as a tax.
More precisely, it drains reserves at the Fed1 and destroyed.
There is *NO* PRINTING MONEY!!!!
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Congressional spending is simply marking up accounts and taxation is marking them down.
Dollars are constantly created and constantly destroyed daily. DAILY!!!!
There is no such thing as paying for programs.
The government neither has nor doesn’t have dollars.
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Dollars are created every time the government seeks to provision itself and deposits are made into their account for spending… via keystrokes on a keyboard
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Dollars are deleted, destroyed, shredded when received as a tax.
Get it?
So why are we always talking about the government going broke?
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Why are we always talking about reducing the deficit or lowering the debt?
The National Debt is merely: wait for it…
The sum total, to the penny, of every untaxed dollar in existence since the start of the nation.
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
To pay off the debt is to DELETE, Destroy EVERY dollar in the economy.
What kind of knuckle head would push that?
What programs are we missing out on because people do not know this?
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Why do people think that taxes fund federal programs?
Being the “richest” country in the world is not about dollars… it’s about available REAL RESOURCES.
Not $€£¥₩
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Why do people make up stories about the end of the dollar or make up tales from the bar stool about the end of the world reserve currency? The nonsense about the Petrodollar??? Why do they do it???
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
The lie is so pervasive and systematically reinforced in our sitcoms, magazines, media, churches work place, community associations and political parties, unplugging from economic illiteracy is a herculean task but one that must be destroyed every moment of every day.
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As we watch the deep freeze sweep the nation and people die from exposure… remember the people who claimed we needed to reduce the debt and deficit and who refused to advance a bold progressive agenda.
Remember them all.
The dead have no voice.
We must be their megaphone.
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
double entry accounting demands an asset be tallied. So the otherside of the debt is a private sector asset on the balance sheet. The debt Is an IOU and the asset is a tax credit.
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
“If state spending is printing money, then federal taxation is unprinting money”
(Thanks @wbmosler)
#LearnMMT #EachOneTeachOne #federaljobguarantee #greennewdeal #nopaygo #wearetherevolution #realprogressives
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
States, counties and non sovereign zones such as the Euro adopters are revenue constrained. So pushing for state based initiatives that should be paid for Federally have a very different constraint. States and individuals cannot spend without borrowing, earning or taxing (gov).
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
To make this distinction look at this snippet from a Rodger Malcolm Mitchell article on Monetary Sovereignty
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Heck, in 1946, NY Fed Chair Beardsley Ruml understood this even but the purveyors of the Mont Pelerin Society and later the Powell Memo and libertarian and right-wing think tanks made neoliberalism God. And eradicated knowledge of “the public purse” from the discourse of society
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Keep this in your back pocket.
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For progressives seeking to organize and expand public purpose spending
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Add the full breakdown of the Job Guarantee to this
2020 abe. 22
Did you know that one of the ways our government prevents massive recessions, or mitigates them is with automatic stabilizers?
Thread 1/x #COVID19
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End the FEDish: Redirecting Our Anger and Efforts to Save the World
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Time is of the essence and the pain is a political choice. #LearnMMT
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
2020 abe. 25
Pretend you understand #MMT (Modern Monetary Theory) and look down at your child, knowing we have less than 12 years to substantively reduce our carbon footprint massively to stave off some of the more deleterious effects of climate change heading towards us.
1/x
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And in the UK? Much the same. Check this thread by
Aipamena
Richard Murphy@RichardJMurphy
2020 abe. 12
I keep hearing people complain that the ‘mainstream media’ does not understand economics and that we’re talked down to as if everything must be explained as if the economy is a household. In this thread I explain all you (and they) need to know. Economics in one thread then….
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Balanced budgets and surpluses?
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
2020 abe. 27
The idea of a Federal Budget Surplus is absurd. Tax dollars are deleted. Since a surplus means deleting more dollars from the economy than the government spent into it, the absurdity of calling it a surplus should be even more apparent. The Clinton surplus created a recession.
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
A sister thread on marginal tax rates
Definitely worth your time.
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
2021 urt. 11
Our Federal Government doesn’t need revenue. Taxes serve as a gas pedal or brake for an economy. They drive the need for currency. They stave off inflation and can be used to break up pooled concentrations of wealth that are destructive to a functioning democracy and economy.
1/x
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Check out my latest with @HumanistReport
youtube.com
The U.S. Already Has the Money For Healthcare, Housing, & Jobs For…
Listen to the Macro N Cheese Podcast Here: https://realprogressives.org/macro-n-cheese-podcast/#
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ
2021 uzt. 4
This is your daily reminder that cash is not a real resource. It isn’t food. It isn’t healthcare. It isn’t shelter. It isn’t education. It isn’t a Green New Deal nor is it Universal Childcare. It isn’t a job with benefits. It’s tokens that do not guarantee you a thing. Nothing.
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ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ@sdgrumbine
2021 uzt. 13
TAXES DO NOT PAY FOR DEFICITS!!!!! Taxes do NOT fund government programs.
1/x
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Aipamena
Stephanie Kelton@StephanieKelton
2017 ira. 17
Unfortunately, the left continues to suffer from either/or 
*Either* we raise tax revenue *or* we cannot save the 
https://theintercept.com/2017/09/11/irma-donald-trump-tax-cuts-climate-change-republican-ideology-capitalism/
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Now….
Go to: Back to Basics: Money, Debt, and Deficit
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2021 aza. 16
The Progressive left have LONG had the right policy plans based on putting people first. The problem has always been how will you pay for it. That question still looms today & sadly many headline activists see winning the people collecting & missing the #MMT education aspect
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https://youtu.be/coJpmsCToRg https://forbes.com/sites/stevekeen/2016/02/12/hey-joe-banks-cant-lend-out-reserves/?sh=5deaa23c3660
http://bondeconomics.com/2014/06/no-banks-do-not-lend-reserves.html?m=1
https://businessinsider.com/banks-cant-and-dont-lend-out-reserves-2013-8
Aipamena
ΛЦƧƬΣЯIƬY IƧ MЦЯDΣЯ
2022 urt. 2
Psst Federal Programs are absolutely NEVER paid for with tax dollars. All government spending is newly created money. Every single time. Not something someday.. happening at this moment and always.
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2022 urt. 14
Our Federal Government doesn’t need revenue. Taxes serve as a gas pedal or brake for an economy. They drive the need for currency. They stave off inflation and can be used to break up pooled concentrations of wealth that are destructive to a functioning democracy and economy.
1/x
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2022 mai. 7
I saw a disturbing comment from someone I don’t believe I ever interacted with in my life. Their comment moved me so much I believe I am going to write a series of articles about it. Let me start with the following: 1/x
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1 AEB-ren Banku Zentrala.