The Left’s embrace of Modern Monetary Theory is a recipe for disaster
I have discussed this in other threads and posts. Basically MMT holds that the government can print money to cover the deficit without causing inflation or stagflation. That is false.
The author gets “supply-side / voodoo economics” wrong, but makes some good points about MMT.
Read why at the link.Modern monetary theory, sometimes shortened to MMT, is the supply-side economics of our time. A valid idea — that traditional fiscal-policy taboos need to be rethought in an era of low real interest rates — has been stretched by fringe economists into ludicrous claims that massive spending on job guarantees can be financed by central banks without any burden on the economy. At a moment of economic and political frustration, some in the more extreme wing of the out-of-power political party are seizing on the possibility of a free lunch to offer politically attractive ways out of economic difficulty.
Modern monetary theory is fallacious at multiple levels.