Discover and read the best of Twitter Threads about #mmt

Most recents (24)

1/ Taxing the rich is like audio compression.

#LearnMMT [THREAD v.3]

Here is about ten seconds of an interview where the interviewee is very soft and the interviewer is extremely loud in comparison. (It's a recorded phone call.)
2/ While listening to this, every time the interviewee speaks, you need to turn the volume up to max in order to hear them. And when the interviewer speaks, you need to jump at the volume knob to turn it all the way down. Otherwise you blast your ears and break your speakers.
3/ The problem is not that the soft parts are not loud enough. The problem is that the loud parts are just too damn loud.

The solution is not to increase the volume of the softer parts, but only to decrease the volume of the excessively loud parts.
Read 17 tweets
1/ Every dollar of federal spending is, and has always been, paid for with created currency. This logically extends to "federal taxes don’t – and can’t – fund federal spending."

Federal taxes are still critical to our society.

#LearnMMT [THREAD]

2/ Overview: Federal taxes:

1. "Drive money." (People must do as asked, in order to get money, in order to pay taxes. Otherwise they go to jail).
2. One of many tools for controlling inflation.
3. A way to impose moral decisions (higher to discourage, lower to encourage).
1. Federal taxes "drive money."

The value of the dollar does NOT come from "the full faith and credit of the United States government." It comes from the fear and avoidance of severe penalties if one does not pay their federal taxes in the US dollar. neweconomicperspectives.org/2011/07/mmp-bl… 3/
Read 16 tweets
1/ Taxing the rich is like audio compression.

#LearnMMT [THREAD]

Here is about ten seconds of an interview where the interviewee is very soft and the interviewer is extremely loud in comparison. (It's a recorded phone call.)
2/ While listening to this, every time the interviewee speaks, you need to turn the volume up to max in order to hear them. And when the interviewer speaks, you need to jump at the volume knob to turn it all the way down. Otherwise you blast your ears and break your speakers.
3/ The problem is not that the soft parts are not loud enough. The problem is that the loud parts are just too damn loud.

The solution is not to increase the volume of the softer parts, but only to decrease the volume of the excessively loud parts.
Read 18 tweets
When I say that we failed to update our models/narratives after 1971, it is a critique of macro approaches *to questions of fiscal sustainability*. Not claiming there aren't models in trade/international economics that explicitly adopt floating regimes. #podcast
And, because we moved on, I didn't get an opportunity to say anything about Mundell-Flemming. For those who might be interested in the #MMT response to that point. bilbo.economicoutlook.net/blog/?p=18739
Read 3 tweets
Your wellbeing and healthcare crucified upon a cross of gold that doesn't even exist anymore.
#M4A #MMT
theintercept.com/2019/02/05/nan…
"Primus, like Pelosi, is a well-known deficit hawk, and both subscribe to the argument by the late Pete Peterson that the debt and deficit are among the gravest threats facing the country... 2 of Primus’s 5 objections to single payer...related to such alleged fiscal challenges."
The public is slowly waking up to the fact that its future and welfare are held hostage by a profoundly destructive ideology of fiscal rectitude. #LearnMMT #MMT
Read 3 tweets
Sadly all programs cost money & #MMT precisely describes the system we have today. It 10000% answers the question of "how do you pay for it" and when spoken truthfully allows both republicans, democrats and indies to redraw their battle lines and win large groups of supporters.
People are turned off to have to change what they say and the wars they wage. They hate finding out they were 100% wrong on the debt. 100% wrong on deficits. 10000% stunted in terms of the bold reforms we know we can afford.
#MMT is the truth that shatters much of the battles we face because most people have been conned into believing social security is broke. That we cannot afford a National Healthcare System and that we cannot guarantee a job for every person that wants one...
Read 4 tweets
⛈️@stf18's 2nd point is crucial. As the #MMT debates roll on, people are going to agree w/ MMT on the technicals, but claim we can't trust Congress to exercise power over the public purse. As if we don't already.

I love #MMT because it exposes neoliberal statecraft...
There are obviously many definitions of neoliberalism. Because of my own background, I'll refer to David Grewal & @JedediahSPurdy's treatment on the @LPEblog (read that blog!)

lpeblog.org/2017/11/06/law…
Following Grewal & Purdy, we can identify four overlapping features of neoliberal argument: 1) market fundamentalism w/r/t to general welfare 2) market fundamentalism w/r/t to freedom & dignity, 3) pessimism w/r/t to democracy, and 4) exclusion/subjugation of alternative ideas.
Read 13 tweets
Little more than a week before January ends, and I’d really like to be at 1K followers. Here’s a little bit about me in a thread so you can make an informed decision about whether following our campaign for the US Senate to take the seat held by @KamalaHarris is worth your time;
1) I am for #MedicareforAll/#M4A. Here’s a pic of me in Sacramento, supporting the passage of #SB562 which would have guaranteed #healthcare coverage for all #California and provided universal healthcare. It is the moral choice, it saves us money and we support a nationwide plan.
I am for broadening the pathway to legal citizenship for all people interested in coming to #America and allowing us to prosper. I have marched with @UFWupdates @UFWF in the past and plan on doing so in the future. Rights of Mexican-Americans are my rights, porque somos familia.
Read 8 tweets
Americans have a “Logic Deficit” when it comes to how the U.S. government *should* operate to both serve and benefit as many citizens as possible while protecting the country and providing the framework in which society functions.

A thread with two examples ...
/1
Myths about “how government works” are created because key aspects of U.S. government operations are viewed through the faulty lens of “This is how one thing works, so it must also apply to how all things work.” /2
This is illogical, obviously. Sometimes the differences are as subtle as comparing apples to oranges. Other times as glaring as comparing an ant to Shaquille O’Neal. All things are not equal. Thus, they shouldn’t be treated as equal. And, yet, this is how myths are created. /3
Read 26 tweets
[1/8] Do you know who was pro-#MMT? A crazy dude called Abraham Lincoln: “The available supply of gold+silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible ... in the volume required to serve the needs of the people…”.
[2/8] Lincoln: “… some other basis for the issue of currency must be developed and some means other than that of convertibility into coin must be developed to prevent undue fluctuations in the value of paper currency”.
[3/8] Lincoln: “The monetary needs of increasing numbers of people advancing towards higher standards of living can and should be met by the government. Such needs can be served by the issue of national currency and credit through the operation of a national banking system”.
Read 10 tweets
Welcome to #SinglePayerSunday!
January 20, 2019
RT from this #Thread and take part in the National #MedicareForAll
Week of Action!
Compare Democrats’ many Medicare-for-All proposals with this chart
pbs.org/newshour/amp/e…
#SinglePayer #MedicareForAll #SinglePayerSunday
Life, Death and Insulin
washingtonpost.com/news/magazine/…
As the cost of the lifesaving medication skyrockets, some desperate diabetics are rationing — and risking their lives. Was Alec Raeshawn Smith one of them?
Demand #MedicareForAll!
#SinglePayerSunday
Read 27 tweets
[Thread: 1/11] Yesterday was the day #MMT officially went mainstream, courtesy of @bhgreeley at @ftalphaville: ftalphaville.ft.com/2019/01/16/154…. Here are the highlights of that historic article:
[2/11] @bhgreeley: “There is nothing inherently socialist about govt debt. A govt can issue debt to pay for whatever it likes: to fight a war, to lower taxes ... to soften the sharp edges of a recession. The US has, in fact, issued debt to pay for all of these things”.
[3/11] @bhgreeley: “American politicians say that public debt crowds out private investment, that it's unsustainable and will turn the country into Argentina. Or Greece. Or now Venezuela. But regardless of what they say, what American politicians do is vote for more debt”.
Read 11 tweets
1/ A major flaw in our society is the idea that “value” is only those things that can be measured or are monetarily profitable. I value when a local park doesn’t have trash all over the place, or my kids or elderly parents can have a book read to them, or a game played with them.
2/ I value my favorite song.
3/ I value the recorded history of slaves, as was done by the Works Progress Administration during the recovery from the Depression. loc.gov/collections/sl…
Read 13 tweets
I’ve been accused of being “sexist” for choosing to run against @KamalaHarris in 2022. This is my response to those claims;
1) I am a gay, black male who detests identity politics and everything it stands for. I do not want anyone to vote for me on the basis of either factor.
2) I am running against @KamalaHarris because it is my right under the U.S. Constitution. I am a United States citizen, who is a resident of California and I am exactly 30 years old as of this post.
3) Any differences I have with @KamalaHarris will be on the basis of policy as much as possible. That does not mean that my team and I will not hold her accountable. An elected official who should be comfortable with her constituents holding her accountable or she should resign.
Read 9 tweets
Let me be crystal clear.

The establishment economists, talking heads, unschooled media and their cronies are out in force to push back against economics that saves planet and lives.

We are in a war. A real war where people are dying. Being killed...
MURDERED by austerity. By LYING about taxes financing programs and national debt being unsustainable and so forth
I know you probably need to hear the gunshot and see a small child laying bloodied in the streets before you will get this... worse maybe you will find a way to blame the dead for their lifelessness... if only they had made better decisions.
Read 8 tweets
We know @AOC has been speaking with @StephanieKelton and other #MMT folks.

She’s been doing a GREAT job handling the “how are we gonna pay for it?” questions, but here are key points to remember:

• Gold standard ended in 1971.

• We have a fiat currency.

• Money is credit.
Our “tax dollars” don’t actually “pay for” things.

The Federal Reserve actually makes all of the Treasury payments, and it has been this way since 1913.

It gets more complicated than this, but:

1) Treasury has Fed CREDIT bank reserves.

2) Banks credit accounts (DIGITALLY).
The Treasury spends by having the central bank credit bank reserves.

The Treasury receives tax payments by debiting bank reserves.

This is pretty much (systematically) like burning paper notes.

We have special banks now (like dealer banks, for example), but that’s the gist.
Read 5 tweets
1/ Ever since 1796, when the first dollar was created, every single dollar of spending by the US federal gov't has been with created currency. This logically extends to, "Taxes cannot pay for federal spending." Below is confirmation from economists, experts, and those in power.
2/ (Federal spending includes the military; Social Security, Medicare, & Medicaid benefits; Congressmen, FBI, and judge salaries; interest on all US Treasury securities; and government provided healthcare.

So...if they're funded with created currency...how can they "go broke"?)
3/ @benbernanke, Chairman of the Federal Reserve during the Great Financial Crisis of 2008, on CBS' @60Minutes in 2009:

"The banks have accounts at the Federal Reserve. To lend to a bank, we simply use a computer to mark up the size of the account."

Read 17 tweets
“The monetary system is a tool to move resources to the government: the government imposes a tax on its citizens, payable only by a token which only comes from the government.”
“In order to get the token (money) to pay the tax, the citizens must work for the government, or must work for someone else who already has the tokens.
A government deficit is when the government spends (gives out tokens) more than it taxes (takes tokens back)”
“The extra tokens that the government gives out but does not take back ends up as savings in private hands.
If private citizens don’t want these extra tokens, then they will try to buy things with them instead of holding on to them.”
Read 6 tweets
What is the main insights of #MMT to the activist?

That the nation isn't broke and doesn't require ↗️📈 taxes to pay for programs?

MMT is not political but it exposes fraud, corruption and destructive behaviors easily.
MMT leverages sectoral balances to assess the health of an economy. Those sectors include Public Sector, Private Sector and Rest of World.

MMT shows we are not on a gold standard, petro standard or anything other than a sovereign free floating non-convertible fiat currency.
Not since 1971 when Nixon ended the convertibility to gold via the Bretton Woods Accord.

Congressional spending is the birth of a dollar and federal taxation is the death of a dollar.

We don't just "print money".
Read 13 tweets
My team and I have been working on a bill for about a year. We’ve kept it quiet but I like to call it the “Alderman-Ramirez Criminal Justice Act” or #ARCJA. It will be a comprehensive Criminal Justice Reform package that will include at minimum the following and @KamalaHarris...
(2)...we hope that if you do defeat us in our election in 2022 that you will consider introducing this bill;
A- Funding for bodycams for all officers in US
B- Citizen advisory boards in all departments
C- Independent investigations of all police shooting-related fatalities...
(3)...D- Financial incentives for departments to begin using #communitypolicing models such as the one overseen by @GayleforCA in her time as mayor of Richmond.
E- Funding for police outreach programs like those out on by @ClovisPolice_CA and @Visaliapd...
Read 9 tweets
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber Ok, this will take a few tweets, forgive me if I say something you already know;

#MMT At it’s core it’s just a description of how money works. How money was created as a means for authorities to command resources (in the old days kings etc, but now more democratic govts).>
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber It focuses on the crucial role of fiscal policy in the economy (The money creation which is under democratic control). And It also outlines the differences between Govts who issue their own currency, and those that don’t.

There are prescriptive aspects, e.g. the job guarantee,>
@CatatonicUk @meadwaj @richmondpapers @NeilSalter4 @DaveRHumphreys @CarolineLucas @BBC @davidgraeber the curtailment of bond issuance, capital controls. These were formulated to ensure that govt can use fiscal policy to maximum effect. This is why for example, MMT rejects the monetarist view of relying on int rates to control inflation, preferring >
Read 7 tweets
An essay that treats the claim “real resources are a constraint on what is otherwise infinite” as #MMT’s secret, reluctantly shared ingredient, when the reality is that it’s a central pillar. As with any unit of measurement, 💰 is indeed infinite. The stuff being measured is not.
The fact that money is infinite to the federal government is incontrovertibly true.

The fact that its use is limited by real resources is also incontrovertibly true.

The genius of #MMT is exactly that it so clearly separates the two concepts. This author strongly disagrees.
Read 12 tweets
Just want to say thanks to a few people for helping me understand macroeconomics and teaching me #MMT , and I need to start with @StevenHailAus - a great communicator who has always been there to answer questions personally and in depth. Thanks, Steven!
Also joint top of the list is @sdgrumbine and @elliswinningham - unrelenting energy, courage, passion and outspokenness. Guys, thanks for teaching me #MMT and making it 🤘
Now I’m onto thanking people who probably don’t know they taught me #MMT: of course @wbmosler (thanks for 7 Deadly Innocent Frauds, and the “guy with the gun” - that was my lightbulb moment!)
Read 9 tweets
Everyone knows that money makes the world go round but few know that it spins in completely opposite directions to how our monetary system is usually described. The UK money system explained in 2 minutes (plus links for further reading) thread follows:
Money 1 - Your Bank Deposit is a record of how much YOU have loaned to your bank (to use as it wishes) - a positive balance in your bank account is just a record of what your bank owes you.
As a depositor, you are a low ranking creditor to the bank. Therefore the Government provides assurance that up to £85000 per individual is safe. fscs.org.uk/globalassets/d…
Read 25 tweets

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