Topic: Is MMT only way forward. (Read 130 times)

But we already have a better system what happens is that governments do not want to use it, modern monetary theory is nothing more put an attempt to try to legitimize the money printing addiction that governments have, as soon as any problem occurs in the world their first reaction is always to print more money and we can see a very clear example of this during the pandemic in which money printing has reached absurd levels, it is obvious that the current system is not going to last, we do not know when it is going to crash but sooner or later it will happen, proving once again that printing money out of nowhere is not the solution and it cannot be called a monetary system.

It is not a method that I would have picked, the better yet candidate for these things is definitely cutting the spending on other stuff by the government temporarily and spending it on helping the poor people out and basically everyone out. Also increasing taxes on the relatively new income during pandemic could be used for paying the needs of many as well.

Do you really think that companies like Amazon who have made tens of billions of dollars in profit in just span of few months should not pay any federal taxes at all for that? We have a pandemic that hurt so many people while enriching just one, does that sound fair? Obviously we are talking about trillions of dollars and just one company can't pay it, but cutting funding on some unused stuff like military while taxing the rich could very well reach enough levels to support people who needs it.

The reason why not every country is using this system is because :::::: it's over generalized and therefore it does not suit the requirement of every country out there , that is certainly right that it might be good for many countries and it does hold a lot of sense but at the same time the individual situation of every country is different and therefore I do believe that we do need new system , made specifically for the situation of the country in need.

There are countries where the government doesn't even have enough power to spend so much so that every single person can get medical care.

How would they solve the excessive public debt ??
How would they control the inflation in a time like pandemic where it's excessive amount of medical care needed but not enough funds with the government.

I do believe that the policy is quite flawed and to be honest we should not even be using a generalized policy for all.

Its quite simple, isn't it? Businesses sell their products to the customer, take profit and then pay wages. People go and buy goods with these wages again. After pandemic, the companies cannot pay people because they are not selling anything anymore. So, economy cannot continue because people aren't buying anything. SO, As a solution, they print trillions of dollars and give them to the "corporates". The "corporates" in-turn can then say that they are not out of money and are thus able to stay on feet.

Why is it so hard to see here that its not the printing that is wrong, its the premise that you need to "fund" the corporates and give them access to easy money for the economy to function. You could very well have a system where corporates are actually responsible for their expenses in a transparent way. Right now, the only way to maintian accountability for the trillions that flow into corporates are internal audits. The auditing companies in turn, themselves are some of the biggest beneficiaries of this system, hence, instead of actually doing their job, they only act to keep things running with falsified information.

It is pretty easy to see that this whole system of milking the wage earning general public to fund as well as provide a market to the corporates is little more than slavery.

Solution: Just put it all on a transparent blockchain open to scrutiny and keep track of every bit of "profit" that the corporates claim and the millions in "bonuses" that the executives claim for keeping the facade running. If everyone were to do their jobs honestly, you wouldn't need a money printing machine.

Bitcoin is a decentralized currency which is not control by the central bank or any government officials in the country. During the lockdown, where some countries economy was collapsing
 because of the virus that was spreading all over the country, that keep many people at home over 8 month before the government could find solutions to the virus, by wearing of facemask and washing of hands all the time in the country.
During the collapse of economy in the country government made a demand for more money to be print to tackle  all the challenges citizens are going through in the country. Government always find solutions to inflation that want to rise in the country because it can cause so many things in the country which will make the country lack so many things in the environment.
Bitcoin is a digital currency which anyone can use to invest and make a good profit from the investment, like the way we use fiat Money to invest and make income from the business. During the pandemic bitcoin keep rising in the exchange market which was making people, think that it will not last long, that is still pumping to be rated as the best among other cryptocurrencies in the world. Since there are bitcoin demand and supply in the market show bitcoin cannot die like the way other currency die in some countries. Since covid-19 could not collapse the bitcoin,i think no inflation or deflation can collapse BTC .

MMT has never really been tested and is a controversial model because it violates the consensus on how economies work on a macro level, and there is some pretty compelling evidence that MMT doesn't work.  Zimbabwe, the Wiemar Republic, Venezuela.  If MMT was a foolproof as proponents think, these countries wouldn't have been hit with hyperinflation.

I'm not sure if these two will go together. I am referring to printing money as much as you want and keeping inflation in check. You print money as much as you want, sooner rather than later you will have to face a higher level of inflation. I assume that by printing money as much as you want, you mean to say that you are printing money out of thin air. In other words, you are actually discounting your economic performance or the amount of goods and services you produced.

I think printing money out of thin air has to be limited. Sometimes it is necessary and therefore inevitable, but the distribution of which should not be focused on large companies. The largest bulk of this money should be distributed to the people themselves so that their purchasing power will increase and will therefore drive production.

There is no alternative and in each crisis, they have to do it for sustaining which they see it as an effective solution. But the long term effect of it will determine everyone's status and how they'll handle their finances. It's actually leading each country that printed more money for the past months into inflation but hopefully, it's controlled and won't be the same as hyper-inflation.

The issue we are having with the current Monetary system is due to lack of good leadership and short cut on the part of most leaders, some do not care, provided the print their way out of nay economic problem that may arise in their dispensation. Debt and inflation are good provided they are well control but now Central bankers have thrown away discipline and good reason due to pressure from politicians, Turkey comes to mind here, the president is just running the system base on his own gut

I don't agree that you need to have a better way to go forward in order to say one thing is bad. I think if you see something bad you can call it as a bad thing without providing a better method to continue forward, that job belongs to people who are in charge of these type of deals and if they can't find something better than MMT that is their problem and not ours to find something better, if I was suppose to come up with a better method, I should have been leading the central bank in that case, but the world doesn't expect me to come up with something better than central banks, I am not an expert.

All I can say is that I see the printing money shows and does so at the end of the day I know that it causes inflation and that is why I believe it is bad, I need nothing more to say it is bad.

I feel as though a lot of economies, especially during this pandemic, have already adopted at least some facets of MMT.

Debt monetisation is rampant in most countries already which undermines the independence of the central bank. Indeed, if the central bank is freely buying up all the government bonds that are available, it is truly no different than just having the government control the money supply.

The difficult part of MMT that I feel will be hardest to implement will be controlling money supply with taxation alone and the jobs guarantee. These will be quite difficult to get society at large to accept at the very least.

As it's very well said, never tell some method is not good enough unless you have another better than it to replace the same. Same goes with Modern Monetary Theory, which states you can print as much as you want if you are sovereign country and keep inflation in check you will never face issues. The problem is when inflation reaches double digit, stopping it becomes very difficult.

So what is the alternative which could be used or what are the possible modification or combination which can be used along side MMT?