An Austrian Critique of the New MMT Documentary

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The Mises Institute is giving away 100,000 copies of Murray Rothbard's, What Has Government Done to Our Money? Get your free copy at Mises.org/Money
Stephanie Kelton is the star of a new documentary film touting the alleged brilliance of Modern Monetary Theory (MMT). Murphy gives a comprehensive critique of the film, covering the flaws in its theory, history, and policy recommendations.
Finding the Money Documentary: Mises.org/HAP447a
Bob's Book on MMT, Understanding Money Mechanics: Mises.org/HAP447b
Radford's Paper on P.O.W. Camps: Mises.org/HAP447c
The Upside-Down World of MMT: Mises.org/HAP447d
Bob's Article on Debt and Future Generations: Mises.org/HAP447e
Bob's Article on The Origin of Specie: Mises.org/HAP447f
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Podcasts ► mises.org/podcasts
Chapters
00:00 Introduction
01:59 The MMT Argument
08:10 Who is Stephanie Kelton?
11:10 MMT's Convincing Strategy
17:36 How Kelton Came to the MMT Side
21:28 The Biggest Flaw in the MMT Argument
31:04 Non Sequiturs Snuck Into the Documentary
39:17 Kelton's Claim of Debt as a Financial Asset
57:30 Do Recessions Follow Federal Budget Surpluses?
59:55 Why Does Gov. Need to Borrow if they can just Print?
1:16:04 MMT Doesn't Understand Money
1:32:45 Conclusion

Опубликовано:

2 июн 2024

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Комментарии : 1 тыс.

@eddie8730 24 дня назад

The thing that gets me with MMT is the slave mentality that goes hand in hand with it. It's basically an acknowledgment that the entire economy has been conquered by the state, and they will graciously let us peasants have the privilege of having private sector money because the state is so benevolent to run deficits. That just can't be correct no matter how you package and brand it.

@jetfaker6666 24 дня назад

Well it is correct in the sense that it's true. The debate is over whether it's morally correct and whether there are alternatives for a modern advanced economy.

@eddie8730 24 дня назад

@@jetfaker6666 The alternative is bank runs and letting too big to fail ACTUALLY fail. No one wants to do that though

@jetfaker6666 24 дня назад

@@eddie8730 if no one wants it, it's not a viable alternative

@eddie8730 24 дня назад

@@jetfaker6666 It's an alternative nonetheless

@jetfaker6666 24 дня назад

@@eddie8730 if your whole objection to the current system is that it's coercive, then coercing the majority of people into a system they don't like can't be an alternative.

@DrProgNerd 23 дня назад

Using MMT reasoning, I'm going to view the turds my dog left in the yard as filet mignon. I call it Modern Culinary Theory. Thanks to MCT, it's gonna be a gourmet dinner tonight. I'm so lucky.

@Richest_Person_in_the_World 23 дня назад

Imagine your literal bank account. Aren't you happy it says $40,000 rather than $0? Well Mosler explains your $40k asset is actually the government's debt.

@rekit7351 23 дня назад

@Richest_Person_in_the_World isn't there a huge risk of government spending too much or misallocating the funds in mmt? The value of the dollar depends on other countries wanting it. When we print money, we reduce its value which means other nations wont want it, causing its value to fall (which we are seeing now with our money printing). I never hear mmt discuss how other nations will react.

@Richest_Person_in_the_World 23 дня назад

@@rekit7351Yeah, probably other nations are not relevant, because MMT dispells the popular view that the U.S. gets all its dollars from China

@bellakrinkle9381 21 день назад

You are correct. When other countries sell their US BONDS, they are getting rid of holding US DOLLARS.

@Richest_Person_in_the_World 21 день назад

@@bellakrinkle9381 So then those dollars end up in another account, big whooptie doo

@kmg501 23 дня назад

A funny thing to make note of is that even animals will use objects that they find as a bartering item. Like a there is a cat who will daily bring a leaf to a person selling fish to trade for a fish. The fact that animals will barter is really quiet stunning and definitely supports the idea of Human Action.

@StheSharknl 24 дня назад

War is peace Freedom is slavery Ignorance is strength Debt is savings

@Richest_Person_in_the_World 23 дня назад

Each debt should have the other side, no?

@StheSharknl 23 дня назад

@@Richest_Person_in_the_World Sure but don’t stop there! What about the value of dollars already in the system? Expanding the money supply decreases the value of money in the system. A dollar is just a medium of exchange. Printing money is like an invincible tax effecting mostly the poor and fixed income holders such as pensioners. If you increase the amount of debt the value of the already outstanding debt decreases. Do you believe in the green money fairy? The green money fairy multiplies everybody’s money times one BILLION. So everybody is a multi billionaire now. Does this create value? Is everybody a billionaire and can buy boats and Ferraris now? Obviously not, prices would adjust due to the lowering of the monetary value (aka inflation, in this case hyperinflation) and bread would soon cost a billion. MMT believes in the green money fairy. One needs to be reeeeaaaalllly high to believe in the green money fairy, give me some of that grass!🧚💨 MMT is like the Enron of academic economics. Accounting tricks don’t create value. The MMT folks got awfully quite when reported inflation was double digits and they will soon be very quite again after the bubble bursts (see Mises index to get a feel how the cycle is progressing)

@Richest_Person_in_the_World 23 дня назад

⁠@@StheSharknlPrinting money does not create new real wealth, however there could be a Lack of dollars in the system. Mosler likens it to a runner with a plastic bag over his head. If you remove the bag and thus enable him to run faster, it's not that you've discovered a brand new illegal drug creating performance out of nothing, but you simply removed drag. So the analogy is that too little moneyprinting is stifling the economy. It's a problem created by government, because they imposed the USD monetary system

@arofhoof 23 дня назад

@@Richest_Person_in_the_World "Each debt should have the other side, no?" Lol yes, I don't know why it is such an inshight of the MMTer. Doesn't mean debt is without consequences somehow.

@Richest_Person_in_the_World 23 дня назад

@@arofhoofSo think about who the asset holder is then for the $34 trillion

@troll_kin9456 23 дня назад

MMT: There are no fixed natural rules. It's all normative. MMT: Let's enslave people. Me: That's horrifying... MMT (cocking gun): "We're just describing how the world works!"

@Richest_Person_in_the_World 23 дня назад

It does work with coercion nowadays

@troll_kin9456 23 дня назад

@@Richest_Person_in_the_World Yes, because of people like you. You don't get to say "the rules can be whatever we want them to be" and also "we want the rules to be you're my slave" and also "hey, that's just how it is. don't blame me!" If there are no natural constraints, and the rules are whatever we want, you are 100% morally culpable for the rules you advocate for, and should be treated like a war criminal.

@Richest_Person_in_the_World 23 дня назад

@@troll_kin9456Wait, coercion existed without my decree. So when I hear MMT saying it is descriptive, that is correct. Now my take is that I plan to use the system to my personal advantage, using my intellect to outsmart those who support taxation.

@willnitschke 19 дней назад

@@Richest_Person_in_the_World Coercion is not good because it exists. The less of it we have, the better we are all off. This because if you're coercing people to do things, it's very likely to be something those people would not naturally do, for common sense reasons.

@snex000 24 дня назад

Why do they act like the government is somehow magic? If Elon Musk is "too rich," why isn't the government "too rich?"

@TheDuckofDoom. 24 дня назад

Most people don't want the responsibility and work of being functioning adults so they support more government as a surrogate parent that superficially takes over responsibility for those basic tasks. Of course there is no free lunch, but I don't want to extend this comment detailing all those hidden costs.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

They’re pushing scheme after scheme, cover after cover until an event happens on all on the way to the ultimate goal.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

They are selling bribes & running out the clock. While running constant distractions.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

Most of the public can be shocked by *(1)* GraceCmmsn Findings. *(2)* *”ThmsS0weIIDestroysThTrckIeD0wnArgmt”* (14 min) (1) They only care about their pocket. (2) A shock to their understanding. Could be accompanied by a 9II summary/BBI8pics.

@Richest_Person_in_the_World 21 день назад

Yeah they make the mistake of thinking that a country of 5 people actually has 6 entities living in it, the sixth one being The Government. But actually there is just the 5 people.

@garrettpatten6312 24 дня назад

She's doing straight up word magic. Doesn't "savings clock" make you feel better?

@Richest_Person_in_the_World 23 дня назад

It does, the debt is a myth and you had been barking about it for decades for no reason

@arofhoof 23 дня назад

"She's doing straight up word magic. Doesn't "savings clock" make you feel better?" She say that like there is no other source of saving for the population.. hilarious Without gracious government debt how come people have any saving /s lol

@Richest_Person_in_the_World 23 дня назад

@@arofhoofI guess you could save in gold or something, but monetary savings comes from public debt. So if you want to own 100,000 Japanese yen, there must be a corresponding deficit by Tokyo

@arofhoof 22 дня назад

@@Richest_Person_in_the_World "So if you want to own 100,000 Japanese yen, there must be a corresponding deficit by Tokyo" What if I want 100,00 yen worth of gold?

@Richest_Person_in_the_World 22 дня назад

@@arofhoofThat would work, you could own gold and it wouldn't affect public debt. But any time you desire a fiat currency, for you to actually get it, that country's public debt will have to be above zero. So you cannot own $100 and also have a $0 american public debt.

@MrLachlan1903 22 дня назад

Renaming debt to 'savings' is genuinly Orwellian.

@Richest_Person_in_the_World 22 дня назад

It's because one person's savings is another person's debt, at least with Debt Money

@willnitschke 19 дней назад

@@Richest_Person_in_the_World Incorrect. If I loan you $100 and you spend it on booze, I have a debt owed and you have a liability, not savings.

@pure_the0ry 19 дней назад

@@willnitschkeyou’re not a sovereign government.

@willnitschke 18 дней назад

@@pure_the0ry And I don't need to be.

@pure_the0ry 18 дней назад

@@willnitschke you do if you want your analogy to work😹

@NorthernObserver 24 дня назад

MMT has already been refuted by the stagflation we are living through now. It’s also highly ironic how deficit spending is fuelling massive income inequality. It’s not a socialist policy. It’s a managerial policy.

@arofhoof 23 дня назад

"It’s a managerial policy." Exactly, it is central planning is disguise, it is not a theory but a method to control the economy

@robertmartin6800 23 дня назад

I reject the framing that MMT isn't part of socialist policymaking just because it has failed to make people more equal. All socialist policy fails, having failed doesn't preclude MMT from being considered socialist policy.

@keaton8182 19 дней назад

I have always thought of socialist and managerial as being very similar since they both refer to an interventionist government manipulating the economy. What distinction are you referring to?

@____________________519 19 дней назад

@@keaton8182 In my mind, the difference is that the managerial policy is purely authoritarian, and not driven by any other ideological loyalty. Managers will pay lip service to any ideology in their pursuit of power, and abandon that ideology when it hampers their ability to pursue power. Most socialists that have had absolute power, like Mao and Stalin, were also quick to abandon any and all ideology in the pursuit and maintenance of their power, which is another reason why these policies seem so similar.

@keaton8182 18 дней назад

@@____________________519 That's interesting! I agree. It seems that collectivism perpetuates romantic lies to the idealists who then become the useful idiots that do the bidding for the authoritarians who weaponize the ideology for power. In my opinion, there are generally only two types of people who subscribe to collectivism. One is confused; the other is evil.

@arofhoof 23 дня назад

Alternative name for MMT: Print, baby, print

@Richest_Person_in_the_World 23 дня назад

MMT's alternative recommendation is to lower taxes. That should sit well with Austrians

@MBarberfan4life 23 дня назад

MMT: Magic Money Tree

@Galacsia 22 дня назад

@@Richest_Person_in_the_WorldWhat about the inflation tax? Will you remove that one?

@adamallen1750 22 дня назад

@@Galacsia They claim they'll do that by increasing taxation.

@Richest_Person_in_the_World 22 дня назад

@@GalacsiaI don't really believe in inflation. The fine for speeding was 5000 RSD when I got my license in 2020 and now it's 5000 RSD still. Anyway if you feel inflation exists, just make more money. As in, if inflation is 3% you should make 500% more money just to be on the safe side.

@MrBonified66 23 дня назад

They really believe that using different words to describe a problem helps to solve it.

@Richest_Person_in_the_World 23 дня назад

Well when you believe in the myth of public debt, it is out sacred duty to snap you out

@willnitschke 19 дней назад

@@Richest_Person_in_the_World The problem is you believe in the myth of the myth of public debt.

@user-py7wp6nw9h 6 дней назад

the old George Carlin skit....

@omidood День назад

Since it’s not actually a problem so yeah

@willnitschke День назад

@@omidood Pretending something isn't a problem doesn't make the problem go away. It makes the problem worse.

@tomrusack3266 23 дня назад

That chart at the beginning must be true by definition, not because MMT is true. Any debt must have a counterparty, liability equals somebody’s asset. Which is why that chart is a mirror image. Interest payments are left out for obvious reasons.

@heteroerectus 15 дней назад

And never mind that not all assets are equal, some are toxic and some are healthy

@sneakthieve 4 дня назад

That’s what I’ve been struggling with since seeing the chart and hearing “our red is your black” if I’m the sole supplier of something, it would just follow that my loss is your gain. That’s the only way it can work.

@abramgaller2037 23 дня назад

The people at the bottom of the production suffer the brunt of inflation.

@DannyDanny-rn7ck 23 дня назад

The inflation was created by shifting the tax burden onto labor and self-employed from the fire sector parasites an monopolies where it belongs

@Richest_Person_in_the_World 23 дня назад

I don't really believe in inflation

@abramgaller2037 23 дня назад

@@Richest_Person_in_the_World That is silly.

@Richest_Person_in_the_World 23 дня назад

@@abramgaller2037Here's what they don't tell you. The value of a single dollar has gone down since 1924, but all dollars viewed together buy more than ever today

@willnitschke 18 дней назад

@@Richest_Person_in_the_World Only because of productivity gains, not monetary or fiscal policy. All you're really pointing out here is that yeah, the government impoverishes its people, but thanks to the creative capacity of those people operating in a free market, they have managed to keep their heads above water, for now.

@CPubi 24 дня назад

wow some of the platitudes in those clips are real evil, insane stuff

@arofhoof 23 дня назад

I cannot the link of the critic of David Greager?

@redbigapplefloppa302 23 дня назад

Great episode! Very engaging and i think you're absolutely right about how to strategically deal with the mmt in terms of discussion.

@robertlenders8755 23 дня назад

How do MMTers address Cantillion effects? That the first receivers, necessarily a few large corporations in particular industries due to needing to interoperate with the bureaucrats, benefit by being able to spend before the price inflation takes place. That seems in tension with their at least publicly professed progressive policies.

@StheSharknl 23 дня назад

A man of culture and knowledge!

@Richest_Person_in_the_World 23 дня назад

I don't really believe in inflation. The fine for speeding has been the same in my city since I got my license

@ctrlaltdebug 22 дня назад

@@Richest_Person_in_the_World speeding fines are set by law and are not subject to market forces. Just look at the price of eggs - that's inflation at work.

@Richest_Person_in_the_World 21 день назад

@@ctrlaltdebugSo if I earn 10% more this year, I will able to speed 10% more this year, and inflation is powerless. Sounds like a good deal, so inflation is 0% in my world

@Dan16673 20 дней назад

@Richest_Person_inlol_the_World

@CarrotCakeMake 23 дня назад

If you counterfeit 100 dollars, then buy 100 dollars of meat from a store, then the store has a surplus of 100 dollars. It's so easy.

@Richest_Person_in_the_World 23 дня назад

But ipso facto the government's dollar is real

@heteroerectus 15 дней назад

No because only the government has the wisdom to print its way out of a bad situation

@sdrowlette 22 дня назад

That clip at 1:17:33 where they point a gun at people is WILD! 😂

@Richest_Person_in_the_World 22 дня назад

Mosler does not necessarily glorify violence, he just says it's the way of history and government

@sdrowlette 22 дня назад

@@Richest_Person_in_the_World Right, it simply and explicitly illustrates how evil the state is.

@Richest_Person_in_the_World 22 дня назад

@@sdrowletteDo you know Peter Schiff's position, he says: "I want the state weak, but not nonexistent. Because in such a vacuum of anarchy, some commie could seize power."

@crimony3054 22 дня назад

And it makes no sense either. If they want taxes paid in bananas, then we could all hold Bitcoins, or gold bars, or dollars, and then, on tax day, buy bananas and pay our taxes. Demanding taxes be paid in a particular currency does nothing to make that currency legitimate... unless there are no alternatives (and, as we know, alternatives abound).

@Richest_Person_in_the_World 21 день назад

@@crimony3054 What makes it a boon for the issuer is that it must be HIS currency. So taxes must be payable in USD only, by design. That is why every "Bitcoin can now pay taxes!" story from the newspaper is false. Namely it's always a mere conversion service from BTC to USD

@markteague8889 23 дня назад

1:06:00 During WWI, the Britsh were puzzled by how the German's artillery was so pinpoint accurate. It turned out that the Germans had written the position equations (basic Newtonian Mechanics applied to artillery projectiles) to incorporate air resistance. Incorporating air resistance over the projectile changes the differential equations from nice neat ones with easily arrived at symbolic solutions into messy ones which require numerical approximation techniques to solve. The Germans were utilizing the Runge-Kutta (en.wikipedia.org/wiki/Runge-Kutta_methods) to approximate the solutions to their ballistics tables having incorporated the effects of air resistance. Ironically, the paper on this technique was sitting in the Oxford (or maybe Cambridge) library. So, the British could have just as easily availed themselves of the advantage had they been a little more erudite in their application of tactical strategy.

@travisthompson1679 24 дня назад

How do you turn "ctrl + p" into a documentary?

@jetfaker6666 24 дня назад

I havent found the money to watch the documentary yet. Should I print it or dig it out of a gold mine?

@Richest_Person_in_the_World 23 дня назад

Probably these clips towards the beginning. I'm actually not interested in checking it out because I'm deeply familiar with MMT and it has many Marxists in its fanbase

@andrews5320 24 дня назад

Money is a standard means of exchange. If MMT were theoretically correct then Zimbabwe would be an economic power house, right? I think that government regulations are also a means for the government to affect money without direct taxation.

@bigqueue 24 дня назад

I get that when somebody buys the bonds of let's say ge, that they're getting an asset. But let's not forget that they were giving basically exchanging an asset in the form of cash for those GE bonds. Those GE bonds were not suddenly an increased asset to those people, they were literally just a trade of one asset for another in exchange for an income stream. The GE Bond itself was not a new asset or a net gained asset, the only thing that could be that is the income stream off of that bond. That GE Bond was traded for another asset called Cash. By putting out the bond, GE did not create that value, GE simply traded a bond for the value that that person came to them with in cash. And that cash came to existence through the work that that person put into the world for which they were paid. So that GE Bond basically came from effort and work have a productive nature. In fact those GE bonds were only purchased by excess savings that those people working put aside.

@Richest_Person_in_the_World 23 дня назад

Look at government bonds. And think of them as simple bank accounts which have a Time Deposit aspect.

@joepaluka9031 24 дня назад

If you have not read Bobs book i urge you to do so. Its very good

@MBarberfan4life 23 дня назад

Moral philosophy? What the heck is that guy talking about?! I studied moral philosophy. Denying the reality of things like supply and demand is literally INSANE.

@Richest_Person_in_the_World 23 дня назад

Where are they denied

@willnitschke 19 дней назад

@@Richest_Person_in_the_World The denial part is where MMT's don't understand economics but pretend they do.

@rsimpson69 23 дня назад

How about if I give someone an IOU for $100 to cut my grass, then settle with him for $10 cash. How long before he stops taking my IOU?

@rsimpson69 23 дня назад

Then the govt taxes $9 of his $10

@Richest_Person_in_the_World 23 дня назад

And where is the U.S. government promising $100 and then delivering $10 upon maturation

@rsimpson69 22 дня назад

@@Richest_Person_in_the_World that was the ratio given, spend 100 and tax 90 back, that I was commenting on. I guess I could have been clearer about the time and point I was responding to

@Richest_Person_in_the_World 22 дня назад

@@rsimpson69Yeah I did not watch the docu. An important MMT point is that tax money is burnt and not recycled back

@willnitschke 15 дней назад

@@Richest_Person_in_the_World Tax money is deposited into the TGA. It doesn't disappear. Sure, Mosler claims this, but just because he says it, it doesn't make it true. It sounds like you're a member of a cult, sorry.

@zorfaV-ziqtys-7nofda 22 дня назад

Money is double spent. There are both deposits (money stock, which is money,) Then there are bond securities (which are sold and bought all the time. Which is it? Does the money in a bank account have money like a Bitcoin or do the owners of the bond securities own the money? It’s being traded by both. If I own something and lend it then I can’t sell what I don’t have because I don’t have it the person I lent it to does.

@Richest_Person_in_the_World 22 дня назад

OK it's a good question though you injected Bitcoin there which is just silly because Bitcoin is a childish scam. Anyway you should think of Bonds as simple bank accounts. It's a dollar deposit

@bimsherwood7006 21 день назад

This right here is an excellent take. Previous MMT arguments I heard seemed to be focussing on the tautologies, but this one focusses on the non-sequiturs.

@Richest_Person_in_the_World 21 день назад

And we are supposed to believe that you already knew all these facts. Such as that Public Debt is a myth and could never be 0 even in principle

@willnitschke 19 дней назад

@@Richest_Person_in_the_World

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeBut do you underdstand that the Public Debt equals the number of dollars in the world. So if debt was $0 you would have $0

@willnitschke 17 дней назад

@@Richest_Person_in_the_World Do you understand that not all debt is bad but wasteful and unproductive debt is bad? Apparently not.

@Richest_Person_in_the_World 16 дней назад

@@willnitschkeIn MMT all debt has the other side of the equation (the asset holder), even foolishly taken on debt

@Harpua1971 23 дня назад

Our politicians embraced MMT decades ago.

@Richest_Person_in_the_World 23 дня назад

Well, people did whine about the debt 15 years ago, and now the debt is much much larger and nothing happened.

@Harpua1971 23 дня назад

@@Richest_Person_in_the_World "Nothing happened" is doing a lot of heavy lifting in that statement.

@Richest_Person_in_the_World 23 дня назад

@@Harpua1971So going forward, do you see it possible that public debt could reach $70 trillion? I do see it. And because nothing happens, we explain that it is because Mosler is right about it being the Savings Clock.

@willnitschke 18 дней назад

@@Richest_Person_in_the_World What do you mean by "nothing happened" given that a lot of bad things have happened, and are happening. Do you mean by "not happened" that the zombie apocalypse hasn't happened yet?

@libertycoffeehouse3944 23 дня назад

Real wealth is when citizens can own more commodities and services and capital output increases.

@Richest_Person_in_the_World 22 дня назад

Sure. MMT deals basically with nominal dollar amounts only.

@willnitschke 19 дней назад

@@Richest_Person_in_the_World So it doesn't address what's actually important?

@rsimpson69 23 дня назад

I expect the motivation for this is to run the economy even more on the edge than we already are, with even less margin for error. So what happens then in case of war or natural emergency, if there's no excess left to draw upon?

@garrettpatten6312 24 дня назад

It is inetersting that direct taxation & spending doesn't create as much price distortion, like oh the price of steel is going up because the govt is buying it all up and driving down demand via taxation. Whereas with printing everything goes up in price. So who knows is the price of steel high because the govt is using all the steel or is it high because gas food and rents are going up.

@Phl3xable 22 дня назад

The issue with MMT economists is that every single one of their accounting tautologies applies to private companies as well. So, you can't use these tautologies to justify government spending without also justifying private spending. Then, they all lead to the same fundamental question - who can spend money and allocate resources better, the government or the private sector? I would say, given the abundance of economic information in a market economy, and the total lack of economic information in a government-run economy, the answer is the private sector.

@Richest_Person_in_the_World 22 дня назад

It doesn't apply to private companies because when Ben Bernanke needs a billion dollars he just types them in; while if Microsoft wants a billion dollars it has to compete for the existing ones.

@Phl3xable 22 дня назад

@@Richest_Person_in_the_World That's completely irrelevant to what I said. The accounting tautologies I'm referring to include that public sector debt = private sector savings.

@Richest_Person_in_the_World 22 дня назад

@@Phl3xableYeah but the point of people like Kelton is that the government has no solvency problem. And your rebuttal is: "Oh yeah? In that case Intel has no solvency problem!" which is patently false.

@Phl3xable 22 дня назад

@@Richest_Person_in_the_World No no... I'm not disagreeing with her assertion that the government can't go insolvent. I agree with that. What I'm disagreeing with is her implication the government SHOULD spend a ton of money.

@Richest_Person_in_the_World 22 дня назад

@@Phl3xableYeah I guess an underrated part of MMT is the prescription that Lowering Taxes would do the same job of leaving more dollars in the economy.

@libertycoffeehouse3944 23 дня назад

Government spending crowds out the private sector. A contractor who makes missiles will have more money to give to shareholders, employees and revenue for the company but this spending without an increase in goods and services that consumers want results in the purchasing power going down for the commodities and services that people want. This causes consumers to spend less and a contraction in the free market. It results in an externality. Other countries may not want to buy our Treasuries. If we don't manufacture goods, foreign exporters may decide not to sell or trade with us. If we look at another accounting ledger (taxpayers vs corporate recepients of the money) we would see a decrease in wealth for the taxpayer while the recipients of the money may depend on that money. They will become less productive over time. The movie depends on the viewer believing that America has a free market. Today, we have a command economy. If MMT is correct why are we getting poorer as the free market disappears?

@Richest_Person_in_the_World 23 дня назад

The government does aim to kick some people out of private sector, in order to get resources for the government. But once that's been achieved, usually an unwanted overshoot happens and they expel too many people. So that is why Warren Mosler proposes either more moneyprinting or less taxation to fix this overshoot

@willnitschke 19 дней назад

@@Richest_Person_in_the_World if the government wants aluminum to build missiles, lots of missiles, because there is a limited supply of aluminum, the cost of aluminum will rise. Private sector projects may not then happen, because they cannot compete for those commodities. This is not difficult to understand. And the government doing more of the same is not going to fix anything. It's going to make the situation worse. You seem to go to extraordinary lengths not to understand basic economic concepts...

@G_v._Losinj2_ImportantPlaylist 24 дня назад

1:15:00 Also-The situation described; Ben FrankIin said the prohibition of CS truIy caused the AmerRev. "The Colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the Colonies their money, which created unemployment and dissatisfaction."

@kylewatson5133 24 дня назад

What we could do, is rename our liabilities as assets and then all of the sudden the debt clock becomes a savings clock.

@Richest_Person_in_the_World 23 дня назад

They are the same thing, the government owes but us private individuals have that asset. For example your $100 is your asset but it was deficit-spent by the government. The proof that they have not collected your $100 in taxes is the very fact that the $100 is in your hands.

@arofhoof 23 дня назад

@@Richest_Person_in_the_World "They are the same thing," Nobody ever said that and it doesnt solve debt problem somehow.

@Richest_Person_in_the_World 23 дня назад

@@arofhoofThat is Mosler's contribution, getting you to recognize that the debt clock is the savings clock. And now the debt problem is solved, because there can be no "savings problem."

@alexsch2514 23 дня назад

There is no renaming. How do you not understand basic principles of macroeconomics?

@Richest_Person_in_the_World 23 дня назад

@@alexsch2514OP was being sarcastic, but actually MMT explains that the government's debt is the citizens' dollar savings.

@88_AC 23 дня назад

You say many times how well made this doc is. Who produced it and how were they paid?

@Jalreal 11 дней назад

Warren Mosler makes supercars in his spare time. He's the progenitor of MMT, I would have to assume he funded a good portion.

@GreyMan1793 18 дней назад

What’s stopping us from making a movie of our own to sway the public. “What went wrong in 1971” or something like that.

@Rob-fx2dw 16 дней назад

According to tricky dickie Nixon's statement at the time it was "temporary". That's now become the biggest 'temporary' in the universe.

@Pau11Wa11 11 дней назад

The Mises Institute is remaking a documentary about the Fed to make it more current. I’m sure they’ll mention Nixon’s early 1970s antics in it, just like they did in the original “Money, Banking, and the Federal Reserve.”

@RoamingMMTer 9 дней назад

Us treasuries are literally a savings account at the fed it is in itself a asset and thats what the "debt" is in the form of and also why MMT is the description of a floating fiat currency that has little to no outside currency debt places like russia had outsude xurrrnxy debt bonds due to borrowing usd after the fall of the soviet union which operated on the gold standard which put its exchange rate at the price of gold after they went off the gold standard and floated the currency they were able to spend to rebuild their country.

@zastorlexa9800 24 дня назад

What Has Govt Done to Our Money: great that is free but outside Ameica the postage is c £26.00. That said, i hope the poject is a success. As for this video: excellent Bob. Thank you for making and posting it. 🙂

@garrettpatten6312 24 дня назад

If the treasury is paid back by the tax......So you loan money to the govt only to get paid back by your own taxes......

@kylewatson5133 24 дня назад

Correct, but since a small margin of all money that moves through the system is taken as a processing fee by politicians they have an incentive that you pay yourself back at a small loss to you but a gain to them.

@curtissnow9546 23 дня назад

What a nice way to thank you for loaning them too much money! Thank you so much to all irs agents out there, you are the real heros!

@Richest_Person_in_the_World 23 дня назад

No, your taxes are destroyed. Fresh money is printed for each spending

@willnitschke 13 дней назад

@@Richest_Person_in_the_World No it's not. Your taxes are transferred into the TGA and hence 'recycled'.

@Richest_Person_in_the_World 7 дней назад

@@willnitschkeSo how did they end up spending more than they have

@rogermenendez4052 6 дней назад

All centralized economies have to deploy by coercion. There's no "free" in socialism.

@robertmiller5835 24 дня назад

Great video Bob.

@cloakbackground8641 21 день назад

I don't exactly mind the MMT types. They seem to have a pretty clear-eyed understanding of fiat economics that cuts through the accounting used to obfuscate everything. It's the "and that's a good thing" part that I disagree with.

@Richest_Person_in_the_World 20 дней назад

It is good that "the sky is falling DEBT" and "hyperinflation" talk was bollocks

@willnitschke 19 дней назад

@@Richest_Person_in_the_World You don't need hyper inflation for inflation to still be a bad thing.

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeI don't register inflation at all. If you feel 3% is bad, then just earn 4% more this year. That shoud be easy for such a business oracle following AnCap

@willnitschke 17 дней назад

@@Richest_Person_in_the_World According to Shadow Stats, which measures consumer inflation using metrics from the 80's and 90's inflation is running at 12%. Is that bad enough for you? Or is no level of inflation bad, 'cause you feel it isn't?

@rutessian 24 дня назад

When she says that the government's deficit is the private sector's surplus all I hear is "this is where inflation come from". That extra money circulating isn't matched by extra resources, goods and services so you end up with higher prices.

@travisthompson1679 23 дня назад

Exactly. This sent me into a rage when she did that. You have to be profoundly stupid or profoundly evil to say what she said. Trying to sell taking our resources as a good thing.

@Richest_Person_in_the_World 23 дня назад

@@travisthompson1679How are they taking your resources

@travisthompson1679 23 дня назад

@@Richest_Person_in_the_World Are you new here? Did you not watch the video? Did you not read the original comment? They commit fraud by printing money and spend it on resources before the money becomes debased leaving fewer for the private sector. Not to mention direct taxation. We all have less than we otherwise would if they didn't exist.

@adamallen1750 23 дня назад

@@Richest_Person_in_the_World They are taking resources from everyone, just like a counterfeiter.

@Richest_Person_in_the_World 23 дня назад

@@adamallen1750 There's real tax and nominal tax. Those of us who don't work for the government are not giving up any real resources

@cryptoemcee 24 дня назад

Thanks, Bob.

@charlesmain9938 16 дней назад

Murphy re my book: "We make it real easy for you to get it without having to pay for it" Awesome. What could be more appealing? MMT works!!

@willnitschke 15 дней назад

Well it works for the ultra rich, certainly. Because the ultra rich own assets, and assets will rise as inflation rises. The poor and those with fewer assets, get smashed by MMT type policies, of course.

@charlesmain9938 15 дней назад

@@willnitschke Are you addressing my comment or just deflecting an attempt at a humorous jab (often a mistake in economics).

@willnitschke 15 дней назад

@@charlesmain9938 Did me pointing out a simple fact hurt your feelings darling?

@charlesmain9938 15 дней назад

@@willnitschke ?

@AtaraxiaaixaratA 23 дня назад

So many mouth breathers in one documentary? How did the universe keep from collapsing?

@billmelater6470 24 дня назад

The issue with arguing against MMT people is that their goal isn't to actually have a rational position. Its like arguing against Socialists. They've started with what they want and use circular logic to keep it.

@TheDuckofDoom. 24 дня назад

Pretty much. But we still have the problem of preventing those mind viruses from spreading. So either making the circular logic obvious to the broader audience or offering an easy to understand alternative.

@Richest_Person_in_the_World 23 дня назад

No it's just that you don't get it. I'm an Austrian but I know MMT is true

@billmelater6470 23 дня назад

@@TheDuckofDoom. For sure. It would be more accurate to say that I'm addressing the fact that you can't have a normal debate with someone who thinks like that or you'll be talking at cross purposes.

@billmelater6470 23 дня назад

@@Richest_Person_in_the_World What exactly do I not get?

@TheDuckofDoom. 23 дня назад

@@billmelater6470 I think it's sarcasm based partly on the username.

@NGC-gu6dz 23 дня назад

Misallocation of resources is great. Government giving people money cuz they say the right political nostroms is fantastic. Love is love.

@Richest_Person_in_the_World 23 дня назад

It could be that there aren't enough dollars in the system, compared to the tax amount proscribed

@willnitschke 19 дней назад

@@Richest_Person_in_the_World And how do you determine "enough" ?

@albionicamerican8806 21 день назад

I did some back of the envelope math earlier today. There are about 240 thousand metric tons of refined gold in the world. (One metric ton = 1000 kg.) Divide that figure by the world's population of 8 billion, and that means the world's per capita gold supply is about 30 grams, which is approximately 1 ounce of gold per person. And because gold is a scarce material commodity, effectively gold ownership is a zero-sum game: If you have 100 ounces of gold stashed away, that means 99 other people have no gold - *_ZERO!_* And in our world now, some individuals & institutions are already hoarding thousands of metric tons of that metal to keep it out of circulation. So how is gold supposed to work as "real money," again? In reality, the hundreds of millions of Americans who don't have enough dollars to pay their bills would wind up not having enough gold to pay those bills.

@Richest_Person_in_the_World 21 день назад

Easy, price goes up. At $3 million an ounce, would there still be these problems you mention

@cloakbackground8641 21 день назад

Owning dollars is also a zero sum game unless you're the government. Well, I guess bankers can turn $1 into $2, but that has special risks. Also, supply and demand works for money too: less gold in circulation means each ounce can buy more goods; more dollars in circulation means each dollar can buy less goods. What I'm asking is, what about dollars fixes the problems you have with gold?

@willnitschke 19 дней назад

@@Richest_Person_in_the_World *Easy, price goes up. At $3 million an ounce, would there still be these problems you mention* And how does one get to 3 million an ounce in practice?

@willnitschke 19 дней назад

@@cloakbackground8641 The "gold fix" is that gold production increases total gold reserves by about 2% annually. GDP grows 2% annually. So it would act as a break on the current multi-decade period of fiscal recklessness. That would be the hope, anyway.

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeI'm refuting those that claim there is too little gold for a gold standard. In fact you could digitize gold, even at many more decimals than satoshis. And then you can pay for everything in gold-backed electronic money

@Guti3737 24 дня назад

The only thing I hate about this podcast is how long he takes to make a point. Let's get to it.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

Eh, this one needed to be detailed.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

This is the estmt’s attempt at modernizing their scheme. We need to know how to counter it-defeat-in-detail, b/c it was a polished attempt.

@Richest_Person_in_the_World 23 дня назад

Bob's educated enough but doesn't want to focus on the actual points. I emailed with him once a few years back and he gave up after like 3 replies. Now he's still roaming in the dark

@willnitschke 10 дней назад

@@Richest_Person_in_the_World I'm sorry to break it to you, but he worked out after a few exchanges that he was dealing with a time wasting idiot. 😉

@willnitschke 19 дней назад

So according to MMT "theory" if I loan $1000 to my alcoholic friend, and spends the money on booze, I now have a debt and my friend's hang-over is $1000 in "savings". So it all balances out.

@Richest_Person_in_the_World 18 дней назад

A hangover is not thought of as wealth but an account full of USD is

@willnitschke 18 дней назад

@@Richest_Person_in_the_World Then you're saying MMT is nonsensical?

@Richest_Person_in_the_World 18 дней назад

@@willnitschke No, MMT is correct in their statement that U.S. deficits are your nominal savings

@willnitschke 17 дней назад

@@Richest_Person_in_the_World No they're not. Because MMT's are so confused that they can't distinguish between assets and expenses (bookkeeping 101) -- which just means they are not worth taking seriously. Unless you can explain why that's not the case, which you don't appear to be able to.

@Richest_Person_in_the_World 17 дней назад

@@willnitschkeIsn't it obvious that if I have 5000 dollars on my MasterCard Debit, I may consider that my asset. So that part is proven. Now why is that same 5000 the government's debt. Simply because they never taxed it (the money is with me not them) but they spent it (the proof is that every dollar bill is littered with governmental inscriptions)

@georgerogers1166 16 дней назад

At least Credit expansion has a deflationary end game. Printing cash has a hyperinflationary end game.

@Richest_Person_in_the_World 16 дней назад

It's all the same, you people need to forget this differentiation between cash and credit. All of it is fungible dollars

@georgerogers1166 16 дней назад

Until they aren't.

@willnitschke 15 дней назад

Credit expansion need not end is deflation, as credit is naturally limited by your collateral. Governments have no such constraints, hence why MMT style policies have been so recently catastrophic.

@heteroerectus 15 дней назад

I heard Zimbabwe and Argentina are huge fans of MMT. No issues with it at all.

@willnitschke 15 дней назад

@@heteroerectus Interesting MMT talking point is if inflation spirals out of control just raise taxes... I mean if someone can no longer afford to buy food, just tax a greater portion of their income. What's not to like?

@kenczerwinski6365 23 дня назад

There is no such thing as a free lunch.

@Richest_Person_in_the_World 23 дня назад

But there is such a thing as printing insufficient money to satisfy the tax bill + savings desire

@willnitschke 19 дней назад

@@Richest_Person_in_the_World That's it. Printing money creates savings. 🤣

@garrettpatten6312 24 дня назад

She acts like only american citizens own govt debt....

@Richest_Person_in_the_World 23 дня назад

It's an asset for the foreigner too then. Same as you can own Brunei Ringgit and would be happy about it

@napper422 21 день назад

Cocaine for hunter Biden 😂😂😂!! Hands down my favorite part.

@Richest_Person_in_the_World 21 день назад

Yeah he ratted himself out as a Trumptard

@willnitschke 19 дней назад

@@Richest_Person_in_the_World So if you deal in facts, you're "Trumptard". I think you outed yourself as a Leftard. 🤣

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeI don't follow left-leaning parties like the Communist Party of Russia of which your boss Putin was member for a lifetime

@willnitschke 16 дней назад

@@Richest_Person_in_the_World Of course, because to a warmongering Neo-liberal Leftard, that was never Real Socialism/Communism (tm), right?

@nustada 18 дней назад

Any debt I am expected to pay, that I did not occur, is still fraud and theft.

@Richest_Person_in_the_World 17 дней назад

MMT explains that public debt is your asset

@willnitschke 10 дней назад

@@Richest_Person_in_the_World Remember when the government pissed all that money away on Solyndra, which then collapsed and is now worth nothing.... THAT's the MMT definition of "our asset." 🤣😂😅

@Richest_Person_in_the_World 10 дней назад

@@willnitschkeWell, if you received $100,000 from the Ministry of Solyndra, that is very real money in your purse

@willnitschke 9 дней назад

@@Richest_Person_in_the_World But that's money gone, champ. Hence it's not an asset. Expenditures are not automatically assets.

@Richest_Person_in_the_World 8 дней назад

@@willnitschkeWhen the government spends, it does so by crediting bank accounts. So someone has the dollars. They will now stay out there FOREVER until someone pays taxes with them

@roderickmorrison 22 дня назад

No offence intended to Bob Murphy, but I really feel the counter argument needs to be stated much more forcefully than this video.

@soulfuzz368 20 дней назад

I think the argument is best made on a free scenic tour of a large forested area from the comfort of a helicopter.

@splynch1980 24 дня назад

MMT - Modern Marxist Theory

@G_v._Losinj2_ImportantPlaylist 23 дня назад

Yep. Added-Step Awthartarizm by a 125+year treeznez inzergnzy.

@G_v._Losinj2_ImportantPlaylist 23 дня назад

Hamilton, Clay, Lincoln The M$$$y Trust-1890s, 1907 Progressivism-ThFR/IncoomTxx Funding WWs & Coomnizm Keynesian NeoIib/con & GIobIsm MMT

@Richest_Person_in_the_World 23 дня назад

It's a neutral description but yes many Marxists flock to it to get free stuff. But it's possible to use MMT for good (for greed)

@willnitschke 18 дней назад

@@Richest_Person_in_the_World It's possible 'in theory' (much like Marxism) but not in practice. Social systems that have misaligned incentive schemes don't work.

@emanuellasker3650 23 дня назад

Very fine elucidations!

@RoamingMMTer 9 дней назад

Us treasuries are a reserve drain not an add

@curtissnow9546 24 дня назад

Lol the highlight clip about monetizing the debt at the beginning had the opposite effect it should have

@bw-cx6uc 24 дня назад

Great analysis

@Richest_Person_in_the_World 23 дня назад

Yeah that is a good point at the end about L. Randall Wray claiming that all money historically was debt money and you cite 19th century gold dollar. I wish he responded to that, he's also a Ph.D. in economics

@MystiqWisdom 20 дней назад

I guess I'm not grasping what they're _clearly_ not grasping about how money works. If you as an individual can't operate your life running forever deficits and racking up debt and "printing" money, and families can't do the same, and if a community is just a bunch of families who can't do the same and sustain itself, and if governments are just a bunch of communities who have something in common with each other (supposedly), then how can a government sustain itself trying to do the same thing that individuals and families cannot do when individuals and families are still the fundamental building blocks of a nation?

@Richest_Person_in_the_World 20 дней назад

It turns out, government spending is different because it comes without any job and without even revenues. In fact "revenue" in French means Return, so even in the word origin we see that the sequence was "spending first"

@willnitschke 19 дней назад

@@Richest_Person_in_the_World Sure governments are different because they can't go bankrupt, just all the people under the rule of that government can.

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeThat's right, the government mints its own currency so it's never insolvent/dollarless. So it's high time that the world cease this Chicken Little talk about U.S. insolvency

@willnitschke 17 дней назад

@@Richest_Person_in_the_World If a government that prints its own currency cannot go bankrupt why did the Wiemar Republic collapse? Why did Zimbabwe experience hyper inflation and (essentially) collapse?

@Richest_Person_in_the_World 9 дней назад

@@willnitschkeWhy does the Russian ruble exist today, when everyone ran from the room in 1998

@Throbbing_Erectionist 23 дня назад

Funny that my dream car was the Mosler MT900S Photon. I didn't know he was an MMTer, but I'm pretty sure he's gone out of business like 3 times since the 80s and then comes back with more money.

@SS-qk8oc 14 дней назад

I’m still mad at how low information this analysis is. And I know Murphy isn’t dumb…. “The gold stater (Egyptian: nfr-nb, "Nefer-nub", meaning "fine gold") was the first coin ever minted in ancient Egypt, around 360 BC during the reign of pharaoh Teos of the LAST NATIVE dynasty in order to pay salaries of Greek mercenaries who were at his service” Before that they had no gold based money…

@Wonderwall627 11 дней назад

Your biggest flaw argument is the same one you saw not to use which is inflation. I want better arguments against inflation, which works for both monetarists and mmt

@willnitschke 10 дней назад

What does "argument against inflation" supposed to mean?

@Wonderwall627 10 дней назад

@willnitschke why 2% or 10% inflation is bad. How to explain to other economists that the soft encouragement to spend over save is less good than the cost of slow compounded inflation over a century. Or another example is the increase in cog is worse than the free Healthcare for all or debatable solutions to green energy people say they can fund with printing.

@willnitschke 10 дней назад

@@Wonderwall627 I think every economist understands inflation is bad. Even the pretend economists like the MMT crowd. As to whether 2% while still bad, has offsetting benefits to compensate, is a bone of contention in economics and not a settled matter. Very briefly, it's argued that 2% has stimulative benefits that exceed its negative impacts. (It is assumed deflation is worse than inflation so it's safer to error on the side of inflation.) Your second question doesn't make sense. It comes down to the rate of inflation and to what degree wages keep up with inflation. "Free" healthcare sounds great. They have "free" healthcare in Cuba. But nobody wants the standard of living of a Cuban. So I think a question like that doesn't really make sense as you're framing it as an IS/OR choice, when it's far more complex than that.

@Jinkaza1882 24 дня назад

Thanks Doc.

@Jinkaza1882 24 дня назад

Back 2ish years ago when this really came on to my radar (Adam Friended of the Sitch and Adam Show is a big MMTer) I asked the question "Are they (the MMT supporters) relying on the USA always being the World Reserve Currency?" I then made a play list of Mosler (your debate with him), Wray, Kelton, Davies all discussing MMT. Doing the proper historical thing by going to as many primary sources. Across all of the lectures the reoccurring cadence is Spend, Tax, and Adjust Interest Rates (STAIR...way to indebtedness). That these dollars will be spent somewhere and that being the World Reserve opens the whole of the Earth, the MMT slogan could be like Dunkin'Donuts "The World runs on Dollars!". But what happens when the dollar is not the WRC?

@TheCruxy 23 дня назад

I've never heard a person express MMT then say "so we can now fund [insert right wing mega project here]"

@RoamingMMTer 9 дней назад

Unless its owned by the banks and sold for over night

@philipvecchio3292 23 дня назад

🌈 Bob Murphy is the only Leprechaun who will tell you that there's no gold at the end of the MMT rainbow 🌈 🪙🪙🪙

@SS-qk8oc 14 дней назад

I used to agree with you, but now believe that gold and silver, while beautiful and useful, make poor currencies.

@willnitschke 14 дней назад

Your beliefs and feelings don't matter.

@Richest_Person_in_the_World 13 дней назад

Why is that

@Jalreal 11 дней назад

Global trade with every country using hard money would most likely lead to mercantilist economic doctrine again, no? Where every country aims to have a trade surplus?

@willnitschke 11 дней назад

@@Jalreal There is no argument here, just an assertion... China has a trade surplus, yet the standard of living of the Chinese citizen is much lower than that of a US citizen. Why do you think that is? 😉

@timothycampbell9061 18 дней назад

Do one that is on “what if the government sold stock in the government?” Would only shareholders vote? Would the deepstate own most? Would we have constrained government?

@Richest_Person_in_the_World 18 дней назад

There is no such thing as Deep State, you fell for Trump's BS

@willnitschke 17 дней назад

@@Richest_Person_in_the_World It's a bit like believing debt doesn't matter. If you don't believe, it's not real. Behold, the two year old in action. 😉

@Richest_Person_in_the_World 17 дней назад

@@willnitschkeThe term Deep State was basically started by Russia in 2016 as a pejorative for "democratic institutions."

@willnitschke 16 дней назад

@@Richest_Person_in_the_World No it wasn't. Deep State describes the politicization of public institutions, such as the Department of Justice, the FBI. This is then weaponised against political opponents. This has very obviously been happening in the US, your confusion and hurt feelings aside. Nice conspiracy theory, though. 😉

@Richest_Person_in_the_World 16 дней назад

@@willnitschkeBasically Putin put his own candidate in power in 2016. But he was horrified to discover that wasn't enough. U.S. institutions still maintained democracy. And hence, Putler started to rave on about a "deep state" (meaning simply, institutions of an open society)

@Bullypulpit 23 дня назад

Kelton, Mosler et al are 100% correct... Right up to the point they claim we can put all the unemployed bums to work building semiconductors and solar panels!

@Richest_Person_in_the_World 23 дня назад

Mosler says that the job guarantee program would be separate from the green new deal. I personally don't care about this aspect of MMT because IDGAF about the working poor

@pandafox12 22 дня назад

Just imagine if instead of holding treasuries, that capital was being used to fund productive private sector activity. Insane crowding out

@Richest_Person_in_the_World 22 дня назад

There is no crowding out, new deposits are printed for each bank client

@willnitschke 19 дней назад

@@Richest_Person_in_the_World Of course there is crowding out. The public sector will compete for limited resources with the private sector. This is econ 101.

@Jalreal 11 дней назад

So if the government doesn't need taxes then why do we have them? What is the MMT proposition for what would happen with no taxes, and the government just creating what needs to be spent for the month/quarter/year? My guess is that taxes are levied to give the currency legitimacy. The whole "you need dollars because taxes must be paid in dollars" kind of thing.

@willnitschke 11 дней назад

Governments levy taxes because funding spending via inflation is a good way to give everyone the shits, especially as it hits the poorest members of society the hardest. Taxation is typically the opposite with the wealthiest paying most of the taxes. Taxes are not especially needed to give a currency "legitimacy". Half of global trade is done in USD, so that is legitimacy enough. Why do meters or yards have legitimacy over cubits? Because the measure becomes accepted practice. That's also why English has legitimacy in English speaking countries also, over, say, ancient Sumarian. 😉

@Richest_Person_in_the_World 10 дней назад

Yes MMT explicitly says that taxes drive the currency

@Richest_Person_in_the_World 10 дней назад

@@willnitschkeSee that is where you're confused. The world accepts dollars once again because they are tax credits in the U.S. It doesn't matter that they are unconscious of it

@willnitschke 10 дней назад

@@Richest_Person_in_the_World No they don't smooth brain. Argentinians horde US dollars, yet don't pay any US taxes. 😅🤣😂

@Richest_Person_in_the_World 10 дней назад

@@willnitschkeI will liken it to the use of cigarettes in prison as money. Why does it work, because cigs can be smoked. And your comeback is: "I know 1 guy that doesn't smoke"

@RoamingMMTer 9 дней назад

And the lasg i chexked states like virginia had to turn to chartalism and state based currency issuing gov to spend i to the local economy because the us was still under uk rule the king sent gold over to be used but wanted it back and when he didn't send gold the states issued its own currency and taxes it out after usage same for the gold only they sent the gold back to the uk after the civil war the us treasury forgave states debt in order for them to join the union those that didn't need debt forgiveness were bought or fought in order to get that land. After this is when the constitution was created and article 1 sect 8 was placed giving congress the right to issue money and the right to tax it out

@adamdominguez7470 24 дня назад

Dam this was good... need to listen to the 2nd time I read Kelton book, and I will watch the Doc as I find this all interesting

@garrettpatten6312 24 дня назад

I've watched many What Is Money episodes, never heard someone say "money is political will"

@RichardLucas 22 дня назад

The deficit stands at over 30 trillion dollars. No one even pretends that we're going to pay that down, any more.

@Richest_Person_in_the_World 22 дня назад

You can't, if you repaid it to $0 there wouldn't be a single dollar on Earth

@willnitschke 19 дней назад

@@Richest_Person_in_the_World Nobody is arguing that there should never be debt. But that unsustainable debt is a problem. You seem confused on this point.

@frederickmorris2216 18 дней назад

Even the youngest of children can understand that pretending that something has value and exchanging that pretence of value for something that has intrinsic value is very simply a fraud...

@willnitschke 18 дней назад

Clearly it had value in the eyes of the beholder, as that person would not have made the trade with you. Austrians call this subjective value.

@Richest_Person_in_the_World 18 дней назад

Other than intrinsic there is also redemption value. An example I use is a can of Pepsi, and a coupon entitling you to a can of Pepsi

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeYes but that should not be confused with outright scams such as Nigerian Prince emails and Bitcoin

@willnitschke 18 дней назад

@@Richest_Person_in_the_World Nobody is confusing a USD with a Nigerian Prince asking to send you a million dollars after you hand over your banking details. Bitcoin is not a "scam" as it's redeemable in US dollars. It is, however, a highly volatile speculative asset.

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeOK So you understand that Nigerian Prince is a scam, but you're having trouble seeing the similarity with Bitcoin. The victim is asked to send $66,000 to the self styled Nigerian Prince, on the verbal promise of $2,000,000 later on.

@mrtriffid 17 дней назад

This is a really weird take! He seems to believe that MMT is factually WRONG, yet he speaks as if you have to go beyond mere argument and 'defeat' it, as if it were an opposing religious doctrine! This guy is not an economist or historian, but a religious crusader, anxious to defeat the public policies that many MMT theorists seem to support.

@willnitschke 17 дней назад

I think you confused yourself and projected your views onto him.

@antpoo 10 дней назад

MMT IS factually wrong, and YES, MMT and woke ideology are preached in a fanatical religious way. They don’t negotiate, they don’t see facts, They see their way or the highway.

@Tenebrousable 23 дня назад

I've 'known' for a while, that pacificm is the correct stand to take. I just can not believe it. I do not want to believe it. I can't find the faith.

@RoamingMMTer 9 дней назад

6 trill is owned by the fed gov and 2 trill is collectively owned by the world 38 trill is the collective us treasuries not redeemed since 1941-2024

@Richest_Person_in_the_World 9 дней назад

35 trillion is the total debt clock and it includes all cash and bank accounts worldwide

@antebellum1 21 час назад

Thank you so much for this. The MMTers confuse me for how nonsensical their word games are. I don't understand why the first statement you make, that if you print infinite money you will have infinite inflation, isn't accepted by them as a counterargument. They seem to assume that money is just something that exists and will always exist. The possibility that a money can lose so much value that people will eventually return to barter as bread, shoes, and other objects become more reliable media of exchange than notes with the word "money" printed on them simply can;t happen in their world. That is exactly what happened in Germany after World War One. Also, thank you for the free Rothbard books. I am getting one for my grandpa and making a donation to the Mises Institute. You guys do so much more with so little resources compared to other political organizations. 100,000 books for free? That is just amazing!

@Richest_Person_in_the_World 13 часов назад

We dispute that inflation is something that can "take on a life of its own"

@willnitschke 12 часов назад

@@Richest_Person_in_the_World Nobody cares about your opinion, and you're not a MMTer either. You're a child who has listened to a couple podcasts about MMT and afterwards confused yourself. 😉

@antebellum1 11 часов назад

@@Richest_Person_in_the_World I did not say that inflation "takes on a life of its own." The government gives inflation life by printing money. Do you agree that there is a relationship between the amount of money the government creates and the rate of inflation? Anything which affects the supply/demand of money can cause inflation/deflation, and one of those things (which is by far the most dominant today) is government creating money.

@Richest_Person_in_the_World 23 дня назад

54:40 OK We're not saying that the upside of having U.S. dollar private savings is that you can now go to the government and say: "What do you got? Bridges? Tolls?" We mean it's good to have a bank account full of dollars in the generally understood sense.

@BobMurphyAncap 21 день назад

If they doubled everybody's bank account (measured in US dollars) overnight, would that be twice as good?

@willnitschke 19 дней назад

How is entitlement/welfare spending (most of the budget) 'savings'. It is merely a perversion of language.

@Richest_Person_in_the_World 18 дней назад

@@willnitschkeBecause when welfare makes it to the bank account of some Retiree X, it now says $3,000 and that is clearly his savings

@Richest_Person_in_the_World 18 дней назад

@@BobMurphyAncapIt might be good because generally not enough government spending exists nowadays

@willnitschke 16 дней назад

@@Richest_Person_in_the_World This deep assessment is based on your feelings, correct? So an approx 1 trillion of government debt servicing, which means a great number of schools, hospitals, roads, bridges, etc., are not going to be a built is a good thing? How much more of this goodness should we expect?

@SS-qk8oc 14 дней назад

The “theory of money” in MMT is that money is just a token…..

@willnitschke 14 дней назад

Money is a token in all economic schools, smooth brain, except MMT. Where the system seems to imply it's the source of all value.

@Richest_Person_in_the_World 10 дней назад

@@willnitschkeThey don't say that I don't think. Money is also not a token in Austrianism because commodity money is directly usable

@willnitschke 10 дней назад

@@Richest_Person_in_the_World There are no commodity based currencies in use in the real world, smooth brain. Everything is fiat, and Austrian economists recognize fiat as currency also. If you really do have some kind of education in economics, you seriously need to ask for your money back.

@Richest_Person_in_the_World 10 дней назад

@@willnitschkeGold is a commodity and money.

@willnitschke 9 дней назад

@@Richest_Person_in_the_World A word of advice, if you're too thick to comprehend a comment, then just ignore it rather than type something irrelevant at me.

@jccusell 23 дня назад

"Why would you want to work? What would motivate you to obtain money?.... Taxes!" Is literally what these people, The Anointed Ones, proclaim. Let that sink in.

@Richest_Person_in_the_World 23 дня назад

They may not be consicous of it, but economics has always worked first and been studied later.

@Richest_Person_in_the_World 23 дня назад

51:42 That is why you still don't get it, I don't need to check any documents, it makes sense that the Debt clock is the Savings clock: If you have a $100 bill in your hands, that is proof that the government never taxed it (it is with you, not in the govt coffers). And since they spent $100 without taxing $100 that is called a deficit

@willnitschke 19 дней назад

Where you're confused is you may not have $100 in your hands. The government spends wastefully, and assets are written down, or off, or don't exist at all. A billion dollar failed solar farm, as just one example.

@donald4nola 24 дня назад

38:06 they speak as if money is real instead of a measure of value and means of exchange of real goods and services.

@Richest_Person_in_the_World 23 дня назад

They speak of literal dollars. Which is something everyone ought to be familiar with

@taichitanaka6237 16 дней назад

21:40 In reality, we don't really have efficient market economy. Pure market economy is utopia. Goverments are owned by big businesses and businesses need government money. So, your critique of MMT is unconvincing.

@willnitschke 16 дней назад

Markets don't have to be laissez-faire to offer most, or at least many, of the same benefits. Fortunately perfection is not required as nothing is ever perfect in the real world. Also, complaining about government collusion, yet advocating for even more government collusion (MMT) is obviously hypocritical _and_ nonsensical. Hence, your defense of MMT ideology remains unconvincing.

@taichitanaka6237 16 дней назад

@@willnitschke Whether you want or not goverments here to stay. And goverments have a lot of power. That's the reality. The point is who should serve the goverment: for few who own most of the resources or for people.

@willnitschke 16 дней назад

@@taichitanaka6237 Yes that's the point, which is why we should all reject MMT.

@Richest_Person_in_the_World 16 дней назад

@@taichitanaka6237Communism has failed every time, and your case will be no different hoss

@willnitschke 14 дней назад

@@Richest_Person_in_the_World Sure, so let's try something that's also guaranteed to fail, like MMT. 😂

@frederickmorris2216 18 дней назад

We now have a monetary system in which a promise to pay by government or anyone as long as it is done through the central banking system is considered as money...one must consider what is the intrinsic value of a promise to pay..

@Richest_Person_in_the_World 18 дней назад

Intrinsic value of the dollar is none, however it has Redemption value as a tax credit. This is unlike bitcoin which has neither

@willnitschke 17 дней назад

@@Richest_Person_in_the_World A dollar is a medium of exchange and is not meant to have "intrinsic" value.

@Richest_Person_in_the_World 17 дней назад

@@willnitschkeIt doesn't have intrinsic value but it has redemption value. Think of a coupon entitling you to a pound of gold, is the paper coupon intrisically precious

@willnitschke 16 дней назад

@@Richest_Person_in_the_World I understand elementary economic concepts. Although I suspect you're proud you've managed to figure this one thing out, and are sharing your "knowledge" with us.

@Richest_Person_in_the_World 16 дней назад

@@willnitschkeSo then why is your team Shocked to discover that the dollar has value even though it isn't intrinsic

@zwatwashdc 15 дней назад

Argentina’s been using MMT for a long time now.

@johbowfor 16 дней назад

MMT - Magic Money Theory

@Richest_Person_in_the_World 16 дней назад

*fact

@willnitschke 16 дней назад

More Money Today.

@Richest_Person_in_the_World 23 дня назад

I'll expand a bit on why moneyprinting is crucial. Warren Mosler uses the example of having 10 students listening to his theory in class, and he decides to coerce them to stay locked there until they bring 1 of his business cards. However, instead of issuing 10 business cards, he only issues 9. So now the ten people can never leave, because the system's in default. And it doesn't matter how well the internal economy functions, there will never be 10 cards for the "tax" since there's only 9 spent.

@willnitschke 19 дней назад

Yes expansion of the money supply is not a bad thing, so long as GDP is also growing. That's NOT a position any serious economist argues. That's your straw man.

@donald4nola 24 дня назад

I should have become an MMT economist. Look at all the free lunch!

@SS-qk8oc 14 дней назад

I was hoping for more, but about what I expected from an ideologue. Boring strawman arguments. Lame.

@willnitschke 14 дней назад

Did these facts hurt your feelings darling?