, 15 tweets, 3 min read Read on Twitter
1 Did you all hear about the new socialist economic theory making the rounds? It's an amazing and involved theory. I'm surprised we all didn't think of this.

The theory is called modern monetary theory.
2. The theory basically says that governments that print their own money can spend whatever the hell they want and not worry about things like debt. Keynesian turbocharged in other words.
3. The theory has 3 central planks
A) monetary sovereign governments face no purely financial constraints
B) all economies and all governments face real and ecological limits on what can be produced and consumed.
C) the government's financial deficit is everyone else's surplus
4. This is what now passes for socialism's economic policy. Really reread those three planks and digest them. This is how the socialists plan to pay for things like free college, Medicare for all, infrastructure etc.
5. This is why socialism always fails and places like Venezuela happen . This is not a "fringe" theory. Many of the world's power players believe in this nonsense. Let's look at those three planks a little closer and add some common sense translation to them.
6. First understand that all three planks added together equal what was formerly known as a command and control economy. Notice there is no talk of market forces or capitalism. You could substitute the terms 10 year plan or 5 year plan in there and it would be the same thing.
7. One could easily rename this economic theory as "money grows on trees in the backyard" theory. So let's look at the three core planks now.

A) basically says governments that have their own currency can print and spend whatever the hell they want. I.e money out of thin air
8. B) is the command and control aspect. Governments decide what to spend on, how much to produce, how much can be consumed, taxes are levied not to raise revenue but to limit inflation. I.e taxes are used to take access money out of the system.
9. C) is the real kicker. Governments never have to pay the money back. You see for every dollar the government goes into debt it means some else gains a dollar. In other words there is no underlying value in money. It's just paper, electrons, pixels.
10. Sen. Sanders and AOC are advocates of this theory and use it to explain how they will "pay" for things like the green new deal. They will just print/create money out of thin air via debt issuance, direct where that new money will be spent and on what and in what quantity.
11. If the influx of all that new money causes inflation, they will increase tax levels to stop inflation and everyone gets richer as the government goes further in debt. Utopia in a nutshell. SMDH and then they wonder why socialism fails every damn time.
12. As I stated above this is nothing but repackaged communism/socialism command &control economic theory dressed up to sound like a form of market economics. It's absurd on it's face. It's stupid. The consequences if such a policy is implemented would make Venezuela look good.
13. I don't know which is worse that people actually sprout this crap or that some leaders really think this crap will work. It's no wonder we had an 8 year recession with people like this at the helm. God help us if they gain power again.
14. For the record, money doesn't grow on trees and while governments can and do just create it out of thin air, it's creation carries a very real cost as it devalues that currency. Money is only has value if people have trust in it. Once that trust is broken its hyperinflation,
15. ..hording, shortages, long lines and riots. These socialists/Marxist have learned nothing. But this time they say they got it all worked out just look at this new shiny monetary policy they came up with. I guess there is a sucker born every minute..🙄🙄🙄
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