HOW TO PAY FOR THE WAR


New Economic Perspectives has the article HOW TO PAY FOR THE WAR by L. Randall Wray.

I’m going to talk about war, not peace, in relation to our work on the Green New Deal—which I argue is the big MEOW—moral equivalent of war—and how we are going to pay for it. So I’m going to focus on Keynes’s 1940 book— How To Pay for the War—the war that followed the Economic Consequences of the Peace.

To many of us, all that L. Randall Wray says has been obvious for a long time. However, we MMT proponents have needed to explain to the skeptics that we have really thought this through. We have not just ignored the possibility of inflation, but we have plans of how to control it. There were a variety of things that were done in WW II that worked. It is no big mystery of what to do.

I presume that the idea of deferred consumption and forced saving has a lot to do with war bonds. It might be worth mentioning that in a sentence somewhere in the article. There are many people who will have no idea what deferred consumption/compensation means in practical terms.

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