Given that increases in government spending increase non-government income* this is not the champion-of-the-private-sector brag she thinks this is.

Add to this that currency-issuing govts can’t save in their own currency and it’s a real head-scratcher.
dumptheguardian.com/politics/2023/… Can taxes and bonds finance government spending? In word: “no”
levyinstitute.org/publications/c…

“Without pension cash… Hunt looks a bit desperate. Where can he turn for the megafunds he needs to put in place the infrastructure that supports sustainable growth?” If only this Hunt fellow had any kind of influence within a currency-issuing government…dumptheguardian.com/business/2023/… “The UK Government creates new money and purchasing power when it undertakes expenditure, rather than spending being financed by taxation from, or debt issuance to, the private sector.”

ucl.ac.uk/bartlett/publi…

“What can we do to help the unemployed into work?” thinktanks wonder, ignoring that unemployed people, (people who need to earn the means to feed themselves but can’t) are necessary, deliberately created +kept jobless for the functioning of monetary policy.dumptheguardian.com/commentisfree/… Monetary policy forces the lowest income people to play a game of musical chairs with jobs. The central bank deliberately takes chairs away and the DWP blame the jobless. A Job Guarantee fixes this.



https://t.co/P8wWzF4DXQ

https://t.co/2pgn5sTcZJpileusmmt.libsyn.com/website/what-i…
pileusmmt.libsyn.com/mmt-podcast-ep…
pavlina-tcherneva.net/job-guarantee-…

Learn to talk like a pundit: wages are up - that’s bad. But luckily the UK has a central bank that will step in and increase unemployment and make wages go down which will be good. Learn to talk like a politician: look at our strong jobs market! We did that! You’re welcome! But also the BoE really needs to get its skates on and do something about inflation, which is a result of a strong jobs market, which is bad.

Inflation is projected to fall, but the BoE raises rates. Why? As @stephaniekelton & L Randall Wray write, the CB’s thinking is that: “A rate hike will magically prevent inflation by creating the expectation that there will be no inflation.” Seriously. That’s what they think. “Sure, we know that spending isn’t very sensitive to interest rates, but expectations are, and that’s what matters… Believing that the Fed will prevent inflation… will prevent inflation! As Peter Pan put it: “All the world is made of faith, and trust, and pixie dust.”

Because there’s a lot of confusion around this, we made this episode with Dr @DEhnts to explain how commercial banks are deputised by the government to create what we call money: pileusmmt.libsyn.com/126-dirk-ehnts… It’s also known as the endogenous money view. Commercial banks create new deposits when they lend, rather than lending out savers’ deposits. Here’s an episode about it with @SamHLevey : pileusmmt.libsyn.com/43-sam-levey-u…

Thread: Whatever people think raising interest rates will do to demand, what it will definitely do is increase the flow of interest income from the government to the private sector (because the government is a net payer of interest to the non-government). That’s increasing basic income payments to people who already have money, for having money. It’s reasonable to say that’s unlikely to lower CPI, and furthermore that the mainstream view of how interest rates work is backward. (ie raising rates actually has an inflationary bias).

Hi new followers!

We think people who are fighting for the NHS, or a GND, or just about anything that govt organises that isn’t a missile or a tax break, who are constantly barraged with the “how will you pay for it?” question should have the answer.

We’re here for that!

1/4 If you want a quick way to understand this thing we think is really urgent and important, here’s a quick read describing MMT:

The first three episodes of our podcast are also a good intro:


And…

2/4theconversation.com/explainer-what…
pileusmmt.libsyn.com

Hi Richard! Respectfully, I think your assertion that the *primary* purpose of taxation being to curb inflation and your suggestion that govts should appear to borrow, even though they don’t have to, are not part of MMT as described by its principal architects.

1/6

https://twitter.com/richardjmurphy/status/1318812872298893312

@wbmosler : “MMT recognizes that taxation, by design, is the cause of unemployment, defined as people seeking paid work, presumably for the further purpose of the [...] Government hiring those that its tax caused to become unemployed, and thereby provision itself with labor.”
2/6

@wbmosler ‘s point that the MMT money story starts w/ a government wishing to provision itself, and so it imposes a tax liability on the private sector, denominated in the government’s unique token (in order to be able to spend said token) is so important (1/6) Without starting the money story with the government wanting to provision itself, you won’t grasp why the Transition Job (Job Guarantee) is part of MMT. You won’t understand why MMT advocates say “the govt creates unemployment in order to hire the workers it unemployed” (2/6)

“A core [MMT] insight is that money in ‘modern States’ — meaning, as Keynes wrote, for the ‘past four thousand years at least’ – is defined by government. Money is created (mostly) by public spending and bank loans.“ James K. Galbraith

bostonglobe.com/opinion/2019/0… “Money is not something “out there” that the government must borrow from the public in order to function. It is created as government functions; only afterward, those who take payment may then trade the cash for a bond.”

“How would Paul Krugman react to an orthodox scholar’s demonstration of the predictive accuracy of key MMT insights – if Krugman did not know that the orthodox scholar’s work was verifying key MMT predictions?”

Another great piece from @WilliamKBlack

neweconomicperspectives.org/2019/03/three-… “[an] orthodox scholar, unknowingly, confirmed the predictive strength of many of MMT’s most important insights. Krugman praised [his] findings as “seminal.”  Krugman had no idea he was praising predictive successes of MMT scholars b/c he had never read MMT scholars’ work.”

“Is anyone surprised that progressives are horrified when they learn that orthodox economists & journalists know that MMT is “obviously true” +respond to that truth with lies designed to prevent the adoption of progressive core policies?” @WilliamKBlack

neweconomicperspectives.org/2019/03/mmt-ta… “Orthodox economists and elite members of the financial press admit, in blunt terms:
1. MMT is “‘obviously true’”

“If you pay your taxes with actual cash, they give you a receipt, a thank you, and then throw that cash into a shredder.” @wbmosler

A perfect, crystal-clear explanation of why we need to get over deficit hysteria (and fast), from the father of Modern Monetary Theory. (Thread) @wbmosler writes:

“So why does the Federal Government tax us?
No, not to get money to spend!
In fact, if you pay your taxes with actual cash, they give you a receipt, a thank you, and then throw that cash into a shredder.

True!