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This is very useful because it very clearly lays out the fundamental error at the core of MMT. Simply: this is straight up denial of a real resource constraint. 1/
The assumption is that the real consumption of the poorest can be raised sufficiently and, simultaneously, climate change can be solved, without touching the consumption of the richest. 2/
This is impossible. It’s a claim that growth will automatically occur rapidly and smoothly enough that poverty can be eliminated, climate changed solved, all while the massively carbon intensive consumption of the 1% remains untouched. 3/
It’s a theory of real output, employment and aggregate demand hidden in the language of monetary accounting. Conflation if real and monetary magnitudes. By printing money we can ensure that the poor catch up with the rich. 4/
No. Solving poverty and climate change requires redistribution. Consumption of the top 1% must be reduced. Two ways you can do this: taxes or inflation. MMT denies both. 5/
It’s very convenient because it isn’t going to upset the Davos set. But it’s wrong. /6
I should have linked to the article not quote tweeted. Here it is. bloomberg.com/opinion/articl…
