MMT correctly warns against treating fiat, unpegged, currency-issuing governments as if they are individuals, households, businesses, local governments and other currency USERS. Fair enough. (1)
Still, a proper 'analogy' of the position such governments find themselves in at the individual level is, I claim, desirable and useful. (2)
Warren Mosler (@wbmosler ) is not daft for encouraging adults to use their experience as parents of minor children and (co-) heads of family households to understand the position such governments are in. (3)
We all have experience with (however we feel morally about it) with people (including oneself) getting others to do or provide 'things' for them or effecting their (our) will by offering, promising and giving (or withholding) something only THEY(we) can supply. (4)
Without loss of generality, let's take the example of "one's love" or "one's respect" or "one's approval" as what only one oneself can supply and offer/promise/give (or deliberately withhold). (5)
Imagine that another person of whom one requires an action or abstention from action to effect one's purposes is *dependent on*, and strongly motivated by, whether they have or receive one's esteem or approval (or love). (6)
Imagine that such a person is, effectively, much less sensitive or responsive to any other positive or negative incentive or sanction, and are "starving" for one's esteem, approval, love, etc.. (7)
In such a scenario, do you reckon a person would have a hard time figuring out "how do I pay for, or fund, the additional esteem, approval, love, etc. I will have to show in order to effect my will upon, or get what I need from, the other"? (8)
In such a scenario, would it not be obvious that for THAT person, the question is irrelevant? Why would they need to 'cut down on the esteem, approval, love 'spent on' other persons' or 'first expropriate some of one's past esteem, approval, love, etc. given to others'? (9)
In such a scenario, what sort of sane person would think they'd need to avoid having to "borrow" "esteem, approval, love, etc." from others to give more of one's esteem, approval, love, etc. to e.g. one's child? (10)
In short, the fiat, unpegged, currency-issuing government is in the same position vis-a-vis currency users from whom it requires "things" to provision itself, effect its will, etc. (11)
Just as a person can only hope to provision oneself through others by offering/promising/giving or withholding one's esteem, approval, love, etc. TO THE EXTENT those others need and/or desire one's esteem, etc. to (not) act as one wishes ... (12)
... the fiat, unpegged currency-issuer can only hope to provision itself through others by offering/promising/giving or withholding its currency TO THE EXTENT those others need and/or desire that currency to (not) act as the currency-issuer wishes. (13).
Likewise, just as a person who's TOO generous with one's esteem, approval, love, etc., dispensing and bestowing them willy-nilly and in great abundance thereby reduces their capacity to effect one's will and provision oneself by offering/withholding them ... (14)
... the fiat, unpegged, currency-issuer who's too generous with its currency, dispensing and bestowing it willy-nilly and in great abundance thereby reduces/undermines ITS capacity to effect its will and provision itself by offering/withholding it. (15)
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