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#Thread 2: Paying for the #GreenNewDeal

The Federal Budget, pt. 2
Fadhel Kaboub @FadhelKaboub

The Green New Deal will be a massive endeavor, but so was World War II. We know how to do massive endeavors. We've done them before. It's a matter of deciding to do them.
We want to end fossil fuel extraction, but we don't want to end people's livelihoods. So the concept of 'just transition' – and guaranteed jobs, with decent wages and benefits – is central to the Green New Deal. #JobGuarantee
Would a #JobGuarantee bankrupt the country? No; in dollars it would cost < 4% of GDP. And it would address structural unemployment and inequality and rebuild communities sustainably. We can do this.
Read 13 tweets
#Thread 1: Paying for the #GreenNewDeal


“You don’t find the money. You find the votes.”

Welcome from @rohangrey! Here are clips from a 5/24/19 workshop at Harvard Law School on budgeting & macroeconomics of a #GreenNewDeal. We're proud & humbled to work with our cosponsors: the HLS Forum, @IGLP_HarvardLaw @DSA_Enviro @GISP_Tweets @thepublicmoney & @SunriseBoston.
In today’s thread:

The State of the Green New Deal "Pay For" Debate, pt. 1
Simon Metcalf @SunriseBoston

The State of the Green New Deal "Pay For" Debate, pt. 2
Andrés Bernal @andresintheory

The Federal Budget, pt. 1
Stephanie Kelton @StephanieKelton
Read 23 tweets
I was lucky enough to catch the end of Elizabeth Cobett's (@uniofeastanglia) presentation. She studies Africa's financial architectures, and makes the argument that financial integration on the continent happens through powerful financial centers. #MES_Africa2019
The centers she identified are Lagos, Casablanca, Johannesburg and Nairobi. This is far from national sovereignty, it's rather an exercise in geopolitics. @CobettEli #MES_Africa2019
Read 34 tweets
So if you have any doubt about this being a #ParadigmShift, check this out. A colleague from the humanities is teaching a social science class this semester. She decided to introduce her students to different theories about #money. 1/n
Naturally (dare I say?), a basic intro to #MMT was in order. One of the sources was episode 2 of the @MMTpodcast by @christreilly (a comedian) & @PatriciaNPino (an engineer) discussing #MMT & #MonetarySovereignty. 2/n…
I'm told that this sparked a very lively discussion that will continue in class next week. I've always said that this paradigm shift will not take place under the leadership of mainstream economists & their admirers. 3/n
Read 6 tweets
1/ #MMT is knowledge.

It’s not a recommendation or prescription.
It’s not something you choose to do or not do.
It’s not something you subscribe to.

It’s just knowledge.

[#LearnMMT thread v.2]
2/ For example, #MMT says that the fed gov’t of economies such as the US “cannot run out of money.” That’s quite different than the false assertion that MMT says that we SHOULD & CAN SAFELY create money to pay for any and everything, damn the consequences.
3/ The former is indisputably true. The latter is stupid.

#MMT says the United States “cannot run out of money.”

Many read far more into this statement than #MMT actually says.
Read 10 tweets
For those who find it hard to accept Modern Monetary Theory’s claims that currency sovereign nations with fiat currencies are unconstrained in the amount of their currency that they can create, & that they do not fund their spending from tax or bonds or anywhere

A thread:
In my sovereign castle/home, say I set up a monetary system whereby I issue the kids with hand written notes of exchange for the chores they do, that they can exchange for treats or privileges from me.
They can trade these notes, let’s call them Relph$, amongst themselves.
To make sure that they need to use my currency I impose a tax upon them of so many Relph$ per year with actual penalties should they fail to pay them.
The taxes that I receive from them I securely destroy so the little buggers can’t double dip.
Read 7 tweets
One way to consider a fiat currency is like me issuing Relph$ to my kids for chores so they can trade between themselves for treats.
If I (as Relph$ sovereign) need to spend more Relph$, I just write on more pieces of paper, I don't need to get them back from the kids first.
>>#MMT ( above)
Likewise as a Relph$ sovereign, I can tax the kids so many Relph$ with penalties for default to ensure that they comply with the system.
Those Relph$ I get from tax just go in a secure bin, I don't need them to spend/create new ones. I can spend as many as I like.
>>#MMT (above)
If I want a more modern system I don't even have to write on bits of paper, I could just put entries in a spreadsheet.
Then when I tax my Relph$ I just deduct numbers from the spreadsheet, exactly like happens with the A$ or the US$ or £Sterling etc.
Read 4 tweets
Slightly belatedly, this week GIMMS celebrate our 1st Anniversary 🥂🍾
A big thank you to all our followers and supporters who have contributed to our efforts over the last year to push for a broader awareness of #MMT From our London launch event last October.....
Where we announced the launch of our website, featuring our own #MMT factsheets with links and videos to the work of core academics, plus our searchable Zotero database of published papers.
We continue to enrich our site with our weekly #MMTLens blog.
Many thanks to our Advisory Board; Warren Mosler, Bill Mitchell, Randall Wray, Mathew Forstater, Stephanie Kelton, Pavlina Tcherneva, Fadhel Kaboub,Rohan Grey, Stephen Hail, Deborah Harrington & Jessica Ormerod for their advice, support and faith in our project.
Read 15 tweets
I attempted to engage the #MMT crowd on the technicality of how the policy fits within the confines of the current financial plumbing, specifically with respect to repo.

Ive also tried in the past with no success, but yesterday's Bloomberg article seemed to catch their

The responses I received were very revealing and confirmed my belief that they failed to consider the impact of such a policy on the current system.

It also revealed an army of zealots unwilling to engage on substance and who would rather tell me how stupid I am
to question the policy as it's so obviously correct that it's unassailable and asking questions about it is a sign of total ignorance.

My takeaway - the inevitability of MMT is on our doorstep and figuring out the tradable implications of unintended consequences will be
Read 4 tweets
A thread on what #MMT has to say re: small, non-hegemonic or so-called "developing" countries, a vital topic for any truly global & decolonial political economy. @FadhelKaboub has been working on this for decades. But recently many MMTers & fellow-travelers r now taking it on 1/x
Let's review MMT basics: fiscally speaking, any currency-issuing gov't with a floating exchange rate & productive infrastructures can afford to mobilize available persons & materials in order to serve communities & the planet. MMT terms this "monetary sovereignty." 2/x
According to MMT, monetary sovereignty is neither absolute, nor an all-or-nothing condition. Instead, monetary sovereignty comes in many qualities & degrees. Here is a good introductory talk on the topic by my colleague @NathanTankus at @law_uom. 3/x
Read 18 tweets
While we watch supposed Progressives lift up neoliberals as "acceptable" or "still progressive", we are left to wonder how many do not understand what a neoliberal even is. People like @EmmaVigeland have been steady calling people "sexist" for not supporting neoliberals. Why?
This is why we as a nation cannot make progress. It is called ignorance and gaslighting.

There is absolutely no excuse for either at this late hour.
For instance, a nation that creates it's own currency is not dependent nor should it try to sell "Green Energy" to "Finance" a Green New Deal

Only a neoliberal would attempt to make such a preposterous claim.
Read 7 tweets
@mcslfc68 @pinccushion @suziegeewizz Mark,first you have to realise2shocking facts:
1)we've been sold biggest&most effective lie ever told,relentlessly for@least40yrs(my lifetime)&in reality far longer
2)government money is INFINITE!*
Grab a brew,take a deep breath&stick with me for a moment (I'm not insane!)
@mcslfc68 @pinccushion @suziegeewizz * infinite as long as you have sovereign currency,as we do in the UK,but the likes of poor Greece,in the €uroZone do not.

If cash is unlimited,then what's preventing unbridled spending?
Two things:
1) the necessary resources
2) inflation
@mcslfc68 @pinccushion @suziegeewizz So for 1)
*Johnson's 40 new hospitals announcement(turned out to be a lie anyway)was pure fantasy cos there ain't enough trained medical personnel to staff them.
*likewise if the government wish to give everyone a diamond,they're not limited by cash but availability of diamonds.
Read 18 tweets
Next panelist is @stf18, presentation titled “What’s with all the coMMoTion?” 😬😓 #MMTConf19
@stf18: printing money is not #MMT and by the way there's no such thing as "doing MMT". MMT informed policy is distinct from MM theories.
@stf18 is now presenting on his work at UMKC on employment statistics and those who "would take a job" . #MMTConf19
Read 6 tweets
Next up @iamdelmancoates on his journey to MMT and it's role in the Modern civil rights movement #MMTConf19
@iamdelmancoates: @ourmoneyus believes money created by the Government and financial institutions is a public utility and should be used for public purpose #MMTConf19
@iamdelmancoates: @ourmoneyus is focused on promoting MMT and the Federal Jobs Guarantee #MMTConf19
Read 15 tweets
Up now, @redheadmenace on "taxpayer identity" as a racialized identity.

.@redheadmenace: her book "racial taxation" shows how taxpayer identity led to educational segregation and unequal funding. #MMTConf19
.@redheadmenace: #MMT shows how it is politics, not how money works, that links taxing and spending #MMTConf19
Read 9 tweets
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
If either party were the answer, or in any way truly better than the other then we would never have gotten @realDonaldTrump.

If any politician were the answer we would never have gotten Trump.

But we did get Trump. 1/
If you can answer the question of how we got here and are not personally uncomfortable then you haven’t really answered it. Because answering the question of how we got Trump is going to be uncomfortable.

We are the reason we got Trump. 2/
Every bad policy we didn’t pay attention to is why. Every corrupt official we tacitly accepted is why. Every centrist, incremental, ‘pragmatic’ solution that didn’t move the needle towards justice close enough is why we got Trump. 3/
Read 4 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
Think state balanced budget amendments are unjust, austere, & violent? Here's Jakob Feinig on the deliberately anti-democratic prohibition of state credit creation baked into the US Constitution. Check out our recent convo on @moneyontheleft. #MMT 1/3…
"There was a very clear elite project that put out documents to reorganize money less democratically by prohibiting state legislatures from emitting bills of credit. This is from Section 10, Article 1 of the Constitution." 2/3
"Instead, they put it in the hands of congress, which was deliberately constructed as an institution less open to non-elite pressure."
Read 3 tweets
"Raw Materials in the History of Economic Policy; or, Why List (the Protectionist) and Cobden (the Free Trader) Both Agreed on Free Trade in Corn"…
Any correct heterodox theory of international trade must highlight the factors of decreasing vs increasing returns industries (primarily impact on domestic economy). #mmt
"Mercantilism and Economic Development:
Schumpeterian Dynamics, Institution Building and International
Read 12 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.…
Read 19 tweets
#Tolstoy & #MMT connection

In 1886, great Russian novelist Leo Tolstoy published a non-fiction piece called 'What Then Must We Do?'.

There is a chapter on #money, which in effect sounds very much familiar and close to the #MMT motto -- #taxes-drive-money.

Tolstoy: "Any money is getting accepted between people only when they are forcefully demanded to be delivered by everybody. When every person needs money to redeem herself/himself from violence, only then money will obtain stable exchange value..."

2/4 #Tolstoy & #MMT connection
Tolstoy (cont'd): "... And what is demanded by the government [to be delivered by people as payment of taxes, fees, etc] obtains value, not what is convenient for exchange."

3/4 #Tolstoy & #MMT connection
Read 7 tweets
1/ @DougHenwood's [COUGH] critique of #MMT, and three responses by MMT economists and scholars.


Henwood's piece:…
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.…
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."…
Read 7 tweets

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