1—We know how to manage long term vs short term
2—Global interdependencies don't matter
3—permission for uncapped spending
4—ignoring effect of aging
5—We can control inflation post-MMT
Even w/traditional keynesianism, we are terrible at ½ the theory. SAVE during booms, spend during downturns. We've got the 2nd half down. Not the first one. Is there anything in our history that might suggest we are capable or willing to make good LT rate decisions?
#MMT seems painfully isolationist. We rely on foreign borrowing, foreign goods & multilateral investment. Do we seriously believe WE control our rates beyond a narrow band? If our credit/economy start deteriorating, watch rates sail away from Fed control.
I get why this theory is appealing. It licenses spending beyond proportions that have historically led to wars. So what better way to feed them political need to promise giveaways than to run this experiment on a nation of 350M people?
US & Western birth rates are plummeting. The productive tax base shrinking. If #MMT-inspired spending backfires, we're SCREWED. Like plowing all your savings into a startup at age 60, you have few working years to make up for the losses. A RISKY experiment.
If MMT experiment doesn't work. If other countries stop financing our deficits, selling us goods on credit. If our bond ratings drop. What tools do we have left to fix this? To motivate our aging UBI-ed, entitlement-rich labor force to innovate our way out?