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Sean Bryan @seanpbryan
, 5 tweets, 3 min read Read on Twitter
I had never heard of Modern Monetary Theory #MMT until this @planetmoney podcast. It piqued my interest and I started reading more about it. It has completely transformed the way I view govt. spending and what govt. should be doing.
npr.org/sections/money…
1/4
I'm still trying to understand a lot of this, but my big takeaways are:
1) Taxes do not fund federal govt. spending; the govt. creates money and then removes it through taxes. So, it is impossible for the federal govt. to run out of money; it cannot default.
2) A federal deficit means a private sector surplus, and a federal surplus means a private sector deficit (ignoring foreign trade). In order for you and me and all other private individuals and companies to have savings, there must be a govt. debt!
2/4
So the federal debt is not something that our kids and grandkids are going to have to pay back to the Chinese, the debt is actually a good thing!?!
All this really blew my mind. So I feel like I have to share it.
3/4
I would recommend the MMT primer on the New Economic Perspectives blog for an in-depth explanation: neweconomicperspectives.org/modern-monetar…
There are also a couple of good podcasts devoted to #MMT : @pocketchangeMMT and @MMTpodcast
4/4
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@Roonomics @MartinSLewis An understanding of ‘money’ and personal finances will stand young people in good stead for navigating their adult lives.
We very much welcome a textbook for this age group.
@Roonomics @MartinSLewis It’s also important for our democracy, that young people grasp the basic principles of government finances and economics as they apply on a national level. This will stand them in good stead when it comes to making important decisions at the ballot box.
@Roonomics @MartinSLewis Modern Monetary Theory #MMT describes how our economy works today.
It is a lens for viewing currency operations and government finances. It forms a framework that policy makers can use to make best use of our resources and the public purse.
Read 4 tweets
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The stocks and flows of public money from the public purse keep the economy healthy and fit for public purpose. #MMT
“Understand spending chains and you understand a fair chunk of Modern Monetary Theory.
When the government spends into the economy it initiates a sequence of financial flows in the non-government sector. The first recipient of the spending is likely to re-spend some or all of it”
“Subsequent recipients will do the same, and so on.
That’s a spending chain.

Two things stop the money being used indefinitely: tax and savings.

Most of the spending chains initiated by spending into the public sector result from spending on healthcare.”
Read 5 tweets
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Thread: This is what I would like @billy_blog’s feedback on.
I *thought* MMT was 100% descriptive, 0% prescriptive. Here are two slides from my MMT-101 lesson (video: ):
In other words, it was my understanding that MMT was explicitly non-political. That people can take the *knowledge* of MMT and use it to implement policies that are progressive, neoliberal, Republican, Libertarian, etc. – or not use the knowledge at all.
Read 38 tweets
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Professor Philip Alston, Special Rapporteur to the UN, today begins a two week fact finding mission of the U.K. to examine the government’s efforts to eradicate poverty.
To establish whether it is meeting its obligations under international human rights law.
A full itinerary of Professor Alston’s mission to visit government officials and campaigning groups has been made available to the general public.
ohchr.org/EN/Issues/Pove…
The visit is intended to provide @Alston_UNSR with additional information on poverty & human rights in the UK.
Extensive input & research in advance of his visit has seen more than 300 submissions from people affected by poverty, civil groups, government officials and academics.
Read 10 tweets
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1/ An extraordinary first article for understanding Modern Monetary Theory #MMT: “Cutting the federal deficit to cure a recession is like applying leeches to cure anemia.” #LearnMMT mythfighter.com/2010/08/13/mon…
2/ Freaking out about the deficit and the debt is to myopically focus on only the federal government’s bank account at the expense of every private citizen. A balanced budget for the federal government takes money directly out of the pockets of every American. #LearnMMT
3/ Freaking out about the deficit & debt is sort of like only caring about the financial condition of the parents while completely ignoring the well-being of all of their children – and the family as a whole. What is best for the FAMILY?! What is best for the COUNTRY?! #LearnMMT
Read 6 tweets
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---LIFE’S THREE BIG LESSONS FOR THOSE WHO WISH TO WAKE UP---

1: Money is the root of all political evil.
1a: ...and it’s corollary, income inequality.
2: Modern Monetary Theory #Mmt demonstrates that we CAN have nice things. The only reason we don’t is because the powerful can only stay powerful if they keep the powerless powerless.
Read 6 tweets

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