I'm copping her book.
Terrific talk
Terrific talk
Professor Stephanie Kelton - The Deficit Myth
- Thread starter FAH1223
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So military spending isnt a waste it "gives birth to new money creation"? 
and building a wall isnt a waste, it will give birth to "new money creation".
and building a wall isnt a waste, it will give birth to "new money creation".
in a weird way yesSo military spending isnt a waste it "gives birth to new money creation"?
Gonna check it
ogc163
Superstar
King Kreole
natural blondie like goku
Secure Da Bag
Veteran
Kelton on Rising, The Hill
Watched the whole video, and this seems dangerous.
Shes gonna have to
Shes gonna have to
What’s dangerous about it?Watched the whole video, and this seems dangerous.
Shes gonna have to
Given how the deficit has and continues to grow under current belief that the deficit is a bad thing and needs to be reigned in, I think we'd reach the line she mentions rather quickly should it be accepted as ok and even a good thing.
Krugman, who i rarely agree was right when he said:
“When people expect inflation, they become reluctant to hold cash, which drive prices up and means that the government has to print more money to extract a given amount of real resources, which means higher inflation, etc... Do the math, and it becomes clear that any attempt to extract too much from seigniorage — more than a few percent of GDP, probably — leads to an infinite upward spiral in inflation. In effect, the currency is destroyed.”
He was right on the money.
These levers arent easily undone as some progressive economist suggest, and a balance not easily maintained. Its best to avoid the risk altogether as once the inflation begins its near impossible to stop.
Just because things are good now doesnt mean they will be tomorrow as Covid has shown. Best to play it safe.
IMO of course.
I've been paying attention to her since last year - two of her biggest ideas were given heavy traction when the Fed started pumping trillions into the market to prop up corporations.
Her ideas definitely deserve more shine.
Her ideas definitely deserve more shine.
You should check out Debt by, David Graeber; Capital by. Thomas Piketty; and Crashed by. Adam Tooze - your economic ideas aren't particularly attuned to the 21st century.
AnonymityX1000
Veteran
This is horseshyt, inflation is based on our ability to pay our debts and we never get remotely close to defaulting so this talk about 'people holding cash', 'money to extract a given amount of real resources', and 'extract too much from seigniorage'. Is just fake intellectual speak that doesn't address the actual topic. Nice try tho Krugman.
My understanding(please correct if im wrong) is that inflation comes as a consequence of excess government spending, but MTT argues the effects can be mitigated by taxation to reduce aggregate demand...
Myto this theory stems from my belief that the control lever(s), specifically taxation, are not easily pulled in this country and Krugmans "infinite upward spiral in inflation" could and would prove true.
My
to this theory stems from my belief that the control lever(s), specifically taxation, are not easily pulled in this country and Krugmans "infinite upward spiral in inflation" could and would prove true.
AnonymityX1000
Veteran
An increase in the levels of government spending OR a significant reduction of tax revenue when was the last time it caused inflation in the US that can be described as a drastic change?My understanding(please correct if im wrong) is that inflation comes as a consequence of excess government spending, but MTT argues the effects can be mitigated by taxation to reduce aggregate demand...
My