Balancing budgets is unnecessary and damaging. In fact, not having a deficit will betray our future generations because of all the infrastructure we won't build. The government can't go broke and to pretend it does leads to actual poverty.
@@imaresurcher MMT is a way to explain that governments can never go bankrupt, but in fact several have done so due to their inflating the currency in order to pay back debts. It is a dishonest method for establishing a kind of semi-stability, which has serious limits and contributes to private savers and investors loosing from what the more professional investors see as a way to make a living.
@@Macrocompassion i'm not sure what youre referring to exactly by your first sentence. MMT just describes the actual process of how the monetary system works. How can you go bankrupt if you are the issuer of your own sovereign currency? you have no real public debt in that case, only bookkeeping. the problems come through political games setting arbitrary limitations and shooting their own economy in the foot.
Due to the huge national debt there is a need to pay a huge amount of interest to the banks. The government can only balance this effect by introducing price inflation of both consumer and durable capital goods, so that savings earn little or no effective interest and the debts are not so heavy to bear on those who have borrowed. Many economists think that money is to blame, but we are having to recognize that the imbalance explained by Fred is the basic cause of this situation.
