Modern Monetary Theory:
- The state creates money and spends it into existence
- The state taxes back money to control inflation, achieve social outcomes and incentivise certain behaviour.
The problem is the population like 1, and dislike 2. But inflation comes later and humans are bad at thinking rationally about future consequences (see: climate change).
So it’s almost inevitable you get uncontrolled spending with printing. Aka ‘brr’.
The other problem is that printing by itself is actually quite socialist. If everybody got equal and the dollar devalues equally across all asset classes goods/services, you end up reducing savings and reducing debts. One could argue this is Good.
The problem is the printing just pours straight into the fat cats of Wall St and you end up with gross inequality.
The problem is the population like 1, and dislike 2. But inflation comes later and humans are bad at thinking rationally about future consequences (see: climate change).
So it’s almost inevitable you get uncontrolled spending with printing. Aka ‘brr’.
The other problem is that printing by itself is actually quite socialist. If everybody got equal and the dollar devalues equally across all asset classes goods/services, you end up reducing savings and reducing debts. One could argue this is Good.
The problem is the printing just pours straight into the fat cats of Wall St and you end up with gross inequality.