Thread by @DeficitOwls

1. If you follow MMT, you've probably heard the latest critique from mainstreamers, which is that raising taxes is politically difficult, and so we can't rely on it to stop inflation.

Of course taxes aren't the only MMT tool against inflation. But even so, the view is wrong.

2. The reason these people are getting it wrong is because most of them haven't actually lived through a time when serious inflation was being caused by excess aggregate demand for goods and services - which is the only time when taxes would help.

3. The last time the United States was in that situation was probably during WW2. And guess what: it was NOT politically difficult to raise taxes. Citizens and politicians alike were CLAMORING for more taxes.

4. The Washington Post was running opinions demanding more taxes. The Treasury would submit proposals to Congress to raise taxes, and Congress would quickly acquiesce, or even suggest higher taxes still.

5. Gallup runs polling every year to ask taxpayers if they feel that the tax they pay is fair. The year when it was viewed as most fair was in 1944, with 90% (!!) agreeing. (By the way, right around that time, taxes were the highest they've ever been in our whole history).

6. Why are taxes so hard to raise now? Because we live in an economy where everybody (or at least, the 99%) feels chronically deprived because they can't find enough money to have a nice life.

7. By contrast, an excess-demand economy is a ROARING economy. Almost by definition, it means that most people have more money than they know what to do with. Does that sound like our recent history to you?

8. Not to mention that voters HATE inflation. People think it's immoral, even evil. When the economists and newspapers started telling politicians and voters that they needed to pay more in taxes or else they'd face inflation, the people chose taxes.

9. So again, as many rightfully pointed out, taxes are not the only MMT suggestion to fight inflation.

But also, the critics are wrong on taxation. The only time that raising taxes would help, happens to also be when it's most politically-feasible to raise them. (Fine.)

Here's the gallup: news.gallup.com/poll/1714/taxe…