Alexandria Ocasio-Cortez is a fan of a geeky economic theory called MMT: Here’s a plain-English guide to what it is and why it’s interesting


Business Insider has the article Alexandria Ocasio-Cortez is a fan of a geeky economic theory called MMT: Here’s a plain-English guide to what it is and why it’s interesting.

The theory is geeky because you have to understand it enough to make rational budget decisions for the federal government. If you are a Senator or Representative, and do not understand how the federal budget impacts the national economy, one wonders what you are doing holding such an office.

In explaining what traditional economists had to say about MMT, the article says:

Not one agreed that governments able to print their own currencies should forget about federal deficits or be free to spend what they like.

That’s fine by us MMT proponents. MMT has never said that we should forget about federal deficits. It says we have to put the deficits in context of what the economy needs. If the economy needs the government to run a deficit of a certain size, then the government should run a deficit of that size. Anything that is much more or much less than the deficit needed by the economy is what causes problems.

I guess that Business Insider does not really understand the subject of the article. However, they do a good enough job of presenting the facts of MMT as explained by the MMT experts. They go off the rails when they pay obeisance to the economic “experts” who explain that the way the USA has been run since 1776 cannot possibly work.

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