Discover and read the best of Twitter Threads about #LearnMMT

Most recents (24)

A) I couldn’t have imagined when I was introduced to the work of Thomas Kuhn and Michel Foucault in 1980 that I would actually experience a paradigm shift or an episteme change respectively. However, major change is now occurring in economics due to Modern Monetary Theory...
B) ..(MMT) - initially the work of Warren Mosler, aided by social media - made available by the internet innovation of Tim Berners-Lee. I wonder if it is a true paradigm shift though as it is the replacement of a body of contrived fantasy and knowingly dishonest information...
C) ..supported by a false infrastructure and camouflaging awards by a clear set of empirical observations, rational historical analysis and robust deductions. However, when enough people grasp the previously concealed, truthful observations and insights of MMT and demand the...
Read 5 tweets
#MMT was easy for me to grasp bc just prior to learning what Modern Monetary Theory is, I was telling my son that money, the U.S. Dollar, is nothing more than an arbitrary representation of value--that labor and the real resources it uses are how real value is created. /1
Value, in and of itself, is nothing more than a human construct placed on real resources (i.e. things) and the amount of work it takes to cultivate, manipulate, or fashion those things into other things for other humans. /2
That value is driven by another human construct called demand (i.e. desire/need) by other humans (i.e. consumers) to have the things that have been given value.

In modern marketing, most of that desire is artificially driven by advertisers to create false scarcity and need. /3
Read 9 tweets
People will not fight for what they do not believe is possible.

People self select themselves out of the picture and create self fulfilling prophecies and allow defeat to overwhelm them to the point of inertia.

1/x
The Green New Deal requires people to understand we can not only afford BUT DO great things and that requires the answer to the "how will you pay for this" part.
Because any thinking human being can see taxes never pay for bombs, nuclear weapons, tanks and F35 planes, why in the world would we place such a burden on spending on the people of this nation?
Read 12 tweets
1/ Federal taxation is the destruction of money. This is not an option or a choice, there is no other way for it to be. @StephanieKelton (then Bell) in her 1998 paper, "Can Taxes and Bonds Finance Government Spending?” (levyinstitute.org/pubs/wp244.pdf)

[#LearnMMT THREAD v.1]
@StephanieKelton 2/ Federal taxation is the destruction of money. This is not an option or a choice, there is no other way for it to be. Eric Tymoigne (@tymoignee) in his 2014 paper, "Interrelations between the Treasury and the Central Bank” (levyinstitute.org/pubs/wp_788.pdf)
@StephanieKelton @tymoignee 3/ As far as *how* federal taxes are destroyed... It’s no different than how the 100 is destroyed (or disappears or dies) when you minus it on a calculator. To the federal government, money is not real (as it is to me and you), it’s a concept.
Read 8 tweets
1/ To me, this is the core of the FJG v UBI debate 👇. (I expect this will change, but these are my thoughts after two absolutely massive debates with UBIers that I've had in the past weeks.)

[#LearnMMT thread v.2]
2/ A major objection UBIers have to the FJG is that in the hands of our corrupt government and their for-profit bribers, the FJG would be outright slave labor. Here is a leading UBI advocate, evoking the Nazi holocaust.
3/ If not slave labor, then indentured servitude. Here’s 2020 candidate Andrew Yang (at 12min, 45sec).

Rubin: “As a small gov’t advocate, the FJG sounds like indentured servitude."
Yang: [laughs] "Yeah, why don’t we just give everyone grey jumpsuits?"

Read 28 tweets
1/ To me, this is the core of the FJG v UBI debate 👇. (I expect this will change, but here are my thoughts after two absolutely massive debates with UBIers that I've had in the past weeks.)

[#LearnMMT thread v.1]
2/ A check will undoubtedly help millions. My concern, a primary concerne of government and SOCIETY, is the collective. UBI will harm the collective, which in turn will harm citizens, starting of course with the most vulnerable.
3/ Most UBI supporters don't understand the fallacy of composition. They're so passionate abt the check being good for THEM, they don't look deeper to see that scaling that program up for the entire economy is extremely detrimental. en.wikipedia.org/wiki/Fallacy_o…
Read 19 tweets
1/ @DougHenwood's [COUGH] critique of #MMT, and three responses by MMT economists and scholars.

[#LearnMMT THREAD]

Henwood's piece: jacobinmag.com/2019/02/modern…
2/ #MMT Economist @ptcherneva: "Henwood is tethered to the wealthy by an imaginary umbilical cord. Time to cut the cord. MMT has a profound emancipatory power. jacobinmag.com/2019/02/mmt-mo…
3/ #MMT scholars @videotroph, @nathanTankus, @RohanGrey, and @RaulACarrillo: "For Henwood, the left’s role is merely to argue extra hard for corporations and the wealthy to pay their 'fair share' of taxes." mronline.org/2019/05/02/mod…
Read 7 tweets
Neoliberalism is about false scarcity, privatization, corporatism, bootstraps, identity politics, market solutions and profit. Not for humanity. For profit. For markets.
To eliminate public purpose spending and place the burden on those least capable of surviving. It breeds winners and losers and is focused on eliminating the state and pushing us all into private debt arrangements.
Progressivism is exactly the opposite of this. Actual REAL PROGRESSIVES are seeking public purpose spending, not tax payer dollars. REAL PROGRESSIVES are seeking inclusion and CITIZENS BENEFITS NOT MEANS TESTING.
Read 8 tweets
The Tony Blair leadership
(In no particular order)

Don't let him rewrite history
In 1997, Labour won in a landslide. They didn't need a coalition. They didn't need compromises.

1997 Labour manifesto calls for both privatization and Austerity.
1. One month after resuming office nytimes.com/1997/07/03/wor…
Read 33 tweets
Pro tip: the Federal Funds Rate is not the cost of capital ft.com/content/46c4b1… “'How can slightly less than a dozen people meeting eight times a year decide what the cost of capital should be versus some kind of organically, market supply determined rate?' Ms Shelton said."
Pro tip: the central bank's most basic mission is to ensure the payment clearing system functions. Setting interest rates is a side effect of it. ft.com/content/46c4b1… "If appointed to the board, she would be “asking tough questions” about its most basic mission, she said." 2/-
She doesn't want the Fed to turn banks into utilities. They are utilities. She wants the banks to lend reserves instead of the Fed paying interest on reserves. Banks don't lend reserves. 3/-
Read 10 tweets
1/ We must tax the rich, but it is **not possible** to use their money to “pay for” federal programs.

[#LearnMMT THREAD]

All federal spending is and has always been financed with created currency.
2/ This is true because of the realities of reserve accounting.
3/ Specifically, this is confirmed by research by @StephanieKelton. (Notice it says, "After carefully considering the complexities of reserve accounting...")
Read 9 tweets
"Inflation the Boogeyman"

versus

Inflation in reality

[#LearnMMT THREAD v1]

WARNING: Just by **reading this thread** you (yes you) are causing a tidal wave of inflation that no plumber can ever fix.

Good job. 👍
2/ Those who do not understand #MMT, or do not want you to understand MMT, will say things like:

"Creating money causes inflation. Creating it beyond that causes hyperinflation."

So, creating one dollar 👉Inflation!

Daring to create that second dollar 👉 **hYpERinFlATiOn**!!!
3/ The idea that

“Creating money causes inflation."

is as ridiculous as saying

“Birth causes crime."

I mean, all criminals are born, amiright?
Read 23 tweets
Taxes don’t pay for things.
The govt creates money when it spends & destroys it when it taxes.
There is no money-bin where the taxes go.
People keep spinning this ‘taxpayers money’ BS bcz it’s too mind-blowing to #learnmmt
Our sovereign currency is a blessing we ignore
#ausvotes
The great difficulty #MMT (Modern Monetary Theory) faces is the inertia of old dogma.
MMT explains how sovereign currencies have the ability to build their attendant nation’s communities by investing in people
It’s just a way of paying for things by changing ‘the economic levers’
Most economists still act as if our currency is still tied to the Gold Standard. It’s not but they like to avoid speaking to this reality.
You can imagine them as one would a pre-science ‘man of medicine’.
#learnmmt
Read 13 tweets
Vamos a repasar todas las tonterías que dijo Huber en su lamentable entrevista para @Planeta_Futuro
1. Según Huber la TMM dice que ""El gobierno" crea dinero como bonos soberanos". No. Los bonos soberanos no son dinero, son un instrumento para retirar reservas del sistema.
2. No, tu vecino no crea dinero cuando le dan una hipoteca. Pero el gobierno inyecta reservas en el sistema cuando gasta. El acto de emitir deuda pública es posterior a la creación de dinero. Los bancos usan las reservas creadas por el gobierno para comprar esos títulos de deuda.
3. Hoy todos los gobiernos dotados de soberanía monetaria emiten dinero. Primero cuando gastan, luego lo retiran emitiendo títulos de deuda pública o cobrando impuestos, pero luego el banco central se ve obligado a comprar esos mismos títulos para volver a inyectar dinero.
Read 20 tweets
Ten #MMT tips to remember on #TaxDay:
1. Federal #taxes don't fund federal spending, so let's #decouple these two important tools.
2. Taxes offset #Government spending.
3. It's a matter of #logic: #dollars must be spent into existence (by the Gov) first, in order for us to use some of those $ to pay taxes
4. #Taxing for #revenue is for local states/municipalities, not the #sovereign issuer of the #currency.
5. Taxing excessive wealth protects #democracy from #Oligarchy and protects us from abusive market power
6. Taxing #pollution & #speculation to reduce such activities, not to "fund" #healthcare and #education.
Read 6 tweets
1/ Imagine there's a billionaire with three children, but she only provides them with (just) enough food for two. They come to her to complain and ask for more, but she responds with, "I know, I know! But how‘re you gonna pay for it?"

(Yes, this thread *is* related to👇.)
2/ Of course, the children have no choice but to start fighting with each other. There's simply not enough food to go around, and eating is a biological necessity! Even though they are **brothers and sisters**, they have to be terrible to each other in order to survive.
3/ Even though she could easily provide for all her children, she chooses instead to shame and punish them for being horrible to each other. [How stealing a loaf of bread for a starving family forms the basis of Les Miserables] bahaiteachings.org/the-lesson-of-…
Read 18 tweets
You know how we artificially back our currency today? Taxation??? No, that is substantively how we do it today. No, the real answer is austerity. We back our currency by forced unemployment and misery.
What in the world would make "progressives" more focused on false evidence appearing real (F.E.A.R.) than the truth?
One can only speculate as the the "why" behind it.
Read 7 tweets
1/ #LearnMMT song parody: “I Am The Very Model of a Modern Monetary Theory. [THREAD v1]

Sung to the tune of “I Am The Very Model of a Modern Major General" from Gilbert & Sullivan's The Pirates of Penzance. Here’s a fantastic performance of the original:
2/ Notes: The full length verse is in the structure "main verse (long) 👉 chorus 👉 short verse." This parody mixes it up a bit.

Key:
🎶 = Start of main verse (long)
🎵 = Chorus
🎼 = Post chorus verse (short)

A crude version sung by me is at the end of this thread.
3/ 🎼 The... very model of a Modern Monetary Thee-o-ry.
Where all fed spending’s always paid for with created currency.
Which logically extends that taxes cannot pay for anything.
Read 22 tweets
1/ *Many* resources for getting started with #MMT.

[#LearnMMT THREAD v.2.01]

In a sentence: MMT is non-fiction macroeconomics.
2/ Here is an excellent single article explainer of #MMT by @StevenHailAus, economist and lecturer in Economics, University of Adelaide: theconversation.com/explainer-what… #LearnMMT
3/ Here is an excellent single article explainer of #MMT by @John_T_Harvey, professor of Economics at Texas Christian University (@TCU): forbes.com/sites/johnthar… #LearnMMT
Read 22 tweets
1/ *Many* resources for getting started with #MMT, for those who know nothing about it.

[#LearnMMT THREAD v.2]

In a sentence: MMT is non-fiction macroeconomics.
2/ Here is an excellent single article explainer of #MMT by @StevenHailAus, economist and lecturer in Economics, University of Adelaide: theconversation.com/explainer-what… #LearnMMT
3/ Here is an excellent single article explainer of #MMT by @John_T_Harvey, professor of Economics at Texas Christian University (@TCU): forbes.com/sites/johnthar… #LearnMMT
Read 19 tweets
1/ What is money?

What gives the money value?

[#LearnMMT THREAD v.1]
2/ The purpose of a government is to

compel its people

to use the real resources at its disposal for the benefit of society (what they define as “beneficial”).

Money, such as the United States dollar in the US, is the incentive given to the people for doing so.
3/ In other words: Money is a tool that the federal government uses to

provision

itself. Examples of what the government needs its people to do:
Read 14 tweets
1/ Where does money come from?

[#LearnMMT THREAD v.1]

Money: US: US Dollar
U.K.: British Pound
Australia: Austrailian Dollar
Canada: Canadian Dollar
China: Yuan
Japan: Yen
...
2/ In fiat currencies, there are two kinds of money:

1. High Powered Money (HPM), or "currency."
2. Bank loans, or "credit."

This current thread discusses only "currency." To learn about bank-created money (where banks are "franchised" by gov'ts):
3/ In the United States, before the first US dollar was created, no one could spend, save, invest, or pay their taxes in US dollars. This question, "Where does money come from?" must be broken into two parts:

1. Who created it? (And how?)
2. Who authorized its creation?
Read 19 tweets
Austerity is a con. Tories driving it KNOW there is a more equitable way to run the economy.
It's #ConsciousCruelty because they also know their massive cuts to public services & infrastructure, causes suffering & death. They don't care. 1\6
Austerity is corruption because not only do Tories slash public funding, they also set up schemes that pump huge sums of public money to a handful of executives.

Remember Jeff Fairburn? He's just the one from the 'help-to-buy' gravy train. 2\6

amp.theguardian.com/business/2019/…
Under Tory austerity, if you've a failing company mismanaging critical public contracts, but have access to Tory ministers; No problem. Tories got your back.
3\6
Read 6 tweets
1/ Repositories of #MMT scholarship and academic papers.

[#LearnMMT thread v.1]

neweconomicperspectives.org/mmt-scholarship
2/ Repositories of #MMT scholarship and academic papers: By @GowerInitiative: gimms.org.uk/tools-and-reso… (direct link: zotero.org/groups/2251544…)
3/ Repositories of #MMT scholarship and academic papers: Regarding the Federal Job Guarantee and involuntary unemployment:
Read 6 tweets

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