> Should that day come to pass, the money-issuer – the central bank – can procure all that idle labor, without creating inflation. If the private sector doesn’t want labor, then there’s no bidding war between companies and a federal jobs program or a universal basic income, so creating money to buy people’s labor won’t drive up the price of that labor.
I had to stop reading after this. This is not how inflation works and it borders on the preposterous to surmise that CBs can monetize deficits without creating inflation because there is excess supply in one market.
All of these people who would otherwise have less/no money are now spending that printed money to purchase goods like food, thus driving inflation higher. You can debate the merits of people being entitled to basic services like food, but the economic pressures are fairly well understood, even by MMTers
I had to stop reading after this. This is not how inflation works and it borders on the preposterous to surmise that CBs can monetize deficits without creating inflation because there is excess supply in one market.
All of these people who would otherwise have less/no money are now spending that printed money to purchase goods like food, thus driving inflation higher. You can debate the merits of people being entitled to basic services like food, but the economic pressures are fairly well understood, even by MMTers