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
4 ай бұрын
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
4 ай бұрын
@@jetfaker6666 The alternative is bank runs and letting too big to fail ACTUALLY fail. No one wants to do that though
@jetfaker6666
4 ай бұрын
@@eddie8730 if no one wants it, it's not a viable alternative
@eddie8730
4 ай бұрын
@@jetfaker6666 It's an alternative nonetheless
@jetfaker6666
4 ай бұрын
@@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.
@troll_kin9456
4 ай бұрын
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
4 ай бұрын
It does work with coercion nowadays
@troll_kin9456
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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.
@katiecannon8186
Ай бұрын
You vote to have our government force you into over reliance on bank loans Because freedom is you with no government issued dollars to pay your bank back
@StheSharknl
4 ай бұрын
War is peace Freedom is slavery Ignorance is strength Debt is savings
@Richest_Person_in_the_World
4 ай бұрын
Each debt should have the other side, no?
@StheSharknl
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@arofhoofSo think about who the asset holder is then for the $34 trillion
@kmg501
4 ай бұрын
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.
@NorthernObserver
4 ай бұрын
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
4 ай бұрын
"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
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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
4 ай бұрын
@@____________________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.
@MrBonified66
4 ай бұрын
They really believe that using different words to describe a problem helps to solve it.
@Richest_Person_in_the_World
4 ай бұрын
Well when you believe in the myth of public debt, it is out sacred duty to snap you out
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World The problem is you believe in the myth of the myth of public debt.
@BorselinoThadchack
4 ай бұрын
the old George Carlin skit....
@omidood
3 ай бұрын
Since it’s not actually a problem so yeah
@willnitschke
3 ай бұрын
@@omidood Pretending something isn't a problem doesn't make the problem go away. It makes the problem worse.
@DrProgNerd
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@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
4 ай бұрын
@@rekit7351Yeah, probably other nations are not relevant, because MMT dispells the popular view that the U.S. gets all its dollars from China
@bellakrinkle9381
4 ай бұрын
You are correct. When other countries sell their US BONDS, they are getting rid of holding US DOLLARS.
@Richest_Person_in_the_World
4 ай бұрын
@@bellakrinkle9381 So then those dollars end up in another account, big whooptie doo
@carusorobi7356
3 ай бұрын
Please focus on the MMT money creation sequence. If you dont start there, you run in circles. 1. When the government spends, it creates new money to do so. 2. It choses to offer bonds as interest bearing money 3. It independenly collects taxes, closing the loop, redeeming the notes/ dollars where they die and are not used at the federal level. All US dollars that exist in the world were printed / Digitized by the US government. Those dollars in the private sector are government debt (printed dollars not yet collected by taxes). How can it be any other way? If this sequence is not understood, you run in infinite circles where the thinking is skewed, inaccurate, and the real economy does not run at its potential. After 1.5 hours, you have run in circles and not dented the MMT arguments because you are missing the starting point. MMT is how the money system works and is irrefutible (Fed chairmen describe it). Politically, what we chose to do with it is a different question. Both sides have been using MMT since 1971 although unaware. States, municipalities, corporations, and households cannot create money. The US gov can. GE bonds are nothing like treasury bonds. GE needs to raise money because it cannot create it. The gov does not "borrow" or raise money via bonds - it pays interest on top of the money it already created- unfortunately we call it borrowing and debt. Why borrow what you have an infinite supply of? There are error errors in the description of the money system. They just present the ahaa realization wrapped up in a progressive agenda. Your confusing their agenda with an accurate description of the money system (MMT). I hope these comments are constuctive. Thanks for the video.
@willnitschke
3 ай бұрын
I didn't read all your comment because you screwed up your first bullet point. 🤣 *When the government spends, it creates new money to do so.* Everything you wrote here is wrong and/or backwards. The government borrows money first, before it can spend it. And it _doesn't_ create the money. The money already exists and is lent to them. (There have been some situation in the past where the Fed has created money, but the Fed is technically not part of the government.) If you can't even get the simplest processes right, you're a complete waste of everyone's time and should not be typing asinine nonsense on the intertubes, sorry.
@Richest_Person_in_the_World
3 ай бұрын
@@willnitschkeNo it creates money. You don't understand point 1 which is why you've been spinning wheels in place for the past month
@carusorobi7356
3 ай бұрын
Well there we have it. The distinction, the ahaa moment. Why does the government need to borrow money, when it creates the money as described by Greenspan, Bernanke, and Powell? I meant my comments to be constructive and think they are. Why do people feel the need to go Lucifer on others? Maybe MMT hits a nerve. Good luck with that. MMT is a new paradigm correcting faulty logic.
@willnitschke
3 ай бұрын
@@Richest_Person_in_the_World *No it creates money. You don't understand point 1* Right, so some idiot tells me I'm wrong but can't explain _why_ I'm wrong. Even though I explained exactly and clearly why people like you are wrong. 🤣
@willnitschke
3 ай бұрын
@@carusorobi7356 *Well there we have it. The distinction, the ahaa moment. Why does the government need to borrow money, when it creates the money* Because it doesn't. Hence there is nothing to discuss.
@snex000
4 ай бұрын
Why do they act like the government is somehow magic? If Elon Musk is "too rich," why isn't the government "too rich?"
@TheDuckofDoom.
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
They are selling bribes & running out the clock. While running constant distractions.
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
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
4 ай бұрын
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.
@robertlenders8755
4 ай бұрын
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
4 ай бұрын
A man of culture and knowledge!
@Richest_Person_in_the_World
4 ай бұрын
I don't really believe in inflation. The fine for speeding has been the same in my city since I got my license
@ctrlaltdebug
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@Richest_Person_inlol_the_World
@tomrusack3266
4 ай бұрын
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
4 ай бұрын
And never mind that not all assets are equal, some are toxic and some are healthy
@sneakthieve
3 ай бұрын
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.
@garrettpatten6312
4 ай бұрын
She's doing straight up word magic. Doesn't "savings clock" make you feel better?
@Richest_Person_in_the_World
4 ай бұрын
It does, the debt is a myth and you had been barking about it for decades for no reason
@arofhoof
4 ай бұрын
"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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
Renaming debt to 'savings' is genuinly Orwellian.
@Richest_Person_in_the_World
4 ай бұрын
It's because one person's savings is another person's debt, at least with Debt Money
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@willnitschkeyou’re not a sovereign government.
@willnitschke
4 ай бұрын
@@pure_the0ry And I don't need to be.
@pure_the0ry
4 ай бұрын
@@willnitschke you do if you want your analogy to work😹
@arofhoof
4 ай бұрын
Alternative name for MMT: Print, baby, print
@Richest_Person_in_the_World
4 ай бұрын
MMT's alternative recommendation is to lower taxes. That should sit well with Austrians
@MBarberfan4life
4 ай бұрын
MMT: Magic Money Tree
@Galacsia
4 ай бұрын
@@Richest_Person_in_the_WorldWhat about the inflation tax? Will you remove that one?
@adamallen1750
4 ай бұрын
@@Galacsia They claim they'll do that by increasing taxation.
@Richest_Person_in_the_World
4 ай бұрын
@@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.
@abramgaller2037
4 ай бұрын
The people at the bottom of the production suffer the brunt of inflation.
@DannyDanny-rn7ck
4 ай бұрын
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
4 ай бұрын
I don't really believe in inflation
@abramgaller2037
4 ай бұрын
@@Richest_Person_in_the_World That is silly.
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
@@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.
@jetfaker6666
4 ай бұрын
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
4 ай бұрын
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
@cloakbackground8641
4 ай бұрын
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
4 ай бұрын
It is good that "the sky is falling DEBT" and "hyperinflation" talk was bollocks
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World You don't need hyper inflation for inflation to still be a bad thing.
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
@@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?
@MBarberfan4life
4 ай бұрын
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
4 ай бұрын
Where are they denied
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World The denial part is where MMT's don't understand economics but pretend they do.
@CPubi
4 ай бұрын
wow some of the platitudes in those clips are real evil, insane stuff
@roderickmorrison
4 ай бұрын
No offence intended to Bob Murphy, but I really feel the counter argument needs to be stated much more forcefully than this video.
@soulfuzz368
4 ай бұрын
I think the argument is best made on a free scenic tour of a large forested area from the comfort of a helicopter.
@John-c4r1o
Ай бұрын
These Magic Money Tree (MMT) will simply end up wasting more money which will end up in the hands of the wealthy. The additional taxes and constraints will simply inhibit the most productive. This MMT like Universal Basic Income is simply communism repackaged, call it communism lite which is the prelude to communism total.
@andrews5320
4 ай бұрын
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.
@nustada
4 ай бұрын
Any debt I am expected to pay, that I did not occur, is still fraud and theft.
@Richest_Person_in_the_World
4 ай бұрын
MMT explains that public debt is your asset
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@willnitschkeWell, if you received $100,000 from the Ministry of Solyndra, that is very real money in your purse
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@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
@rsimpson69
4 ай бұрын
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
4 ай бұрын
Then the govt taxes $9 of his $10
@Richest_Person_in_the_World
4 ай бұрын
And where is the U.S. government promising $100 and then delivering $10 upon maturation
@rsimpson69
4 ай бұрын
@@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
4 ай бұрын
@@rsimpson69Yeah I did not watch the docu. An important MMT point is that tax money is burnt and not recycled back
@willnitschke
4 ай бұрын
@@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.
@Phl3xable
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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.
@travisthompson1679
4 ай бұрын
How do you turn "ctrl + p" into a documentary?
@charlesmain9938
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@willnitschke Are you addressing my comment or just deflecting an attempt at a humorous jab (often a mistake in economics).
@willnitschke
4 ай бұрын
@@charlesmain9938 Did me pointing out a simple fact hurt your feelings darling?
@charlesmain9938
4 ай бұрын
@@willnitschke ?
@GreyMan1793
4 ай бұрын
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
4 ай бұрын
According to tricky dickie Nixon's statement at the time it was "temporary". That's now become the biggest 'temporary' in the universe.
@Pau11Wa11
4 ай бұрын
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.”
@carusorobi7356
3 ай бұрын
It already exists. Any summary of Neoliberalsm (1970ish - 2008 ish) covers it. It cratered. MMT was unknowingly used to bail out the banks, by a republican fed. As Greenspan said - the markets dont work the way he thought they did. Middle class homeownership is now in the hands of the top. It should trickle down any day now.
@willnitschke
3 ай бұрын
@@carusorobi7356 The government wouldn't need to bail out banks if it's policies didn't create the crisis in the first place. Remember, banks are quasi-government anyway.
@carusorobi7356
3 ай бұрын
@willnitschke. I agree. Since 1971 ish, we have been operating on Neoliberalism principles, that led to wiping out the middle class, deregulation of the banks, and bad bank loans as sub prime mortgages (lessening working income, Bush push for home ownership) that broke the global financial system, signifying the death of Neoliberalism. Something new is happening now. Neoliberalism thinking is dying. For Me, MMT is the best explanation - it happens to to argue that the Neoliberalsim way of thinking is sub optimal. The government operating under Neoliberalsim economic thought ultimately allowed things to run amuck, resulting in bailing out the free market banks. You might enjoy videos (there are several) on the book " The death of Neoliberalsim". Like it or not, MMT is becoming the new economic paradigm the government operates by. I Say this not to argue, but it is what they are doing - covid stimulus 1 and 2, chips act, Infrastructure spending, Inflation Reduction Act (solar). Opinion - Neoliberalism thinking and backing simply enforces a structure for trickle down economics, that does not trickle, and ultimately needs bailed out. Private profits, socialized risk - systematic transfer of wealth from the working class to the wealthy. Neoliberism thinking enforces this, MMT understanding allows us to break free of that potentially.
@zorfaV-ziqtys-7nofda
4 ай бұрын
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
4 ай бұрын
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
@markteague8889
4 ай бұрын
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.
@arofhoof
4 ай бұрын
I cannot the link of the critic of David Greager?
@libertycoffeehouse3944
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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...
@libertycoffeehouse3944
4 ай бұрын
Real wealth is when citizens can own more commodities and services and capital output increases.
@Richest_Person_in_the_World
4 ай бұрын
Sure. MMT deals basically with nominal dollar amounts only.
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World So it doesn't address what's actually important?
@garrettpatten6312
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
No, your taxes are destroyed. Fresh money is printed for each spending
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World No it's not. Your taxes are transferred into the TGA and hence 'recycled'.
@Richest_Person_in_the_World
4 ай бұрын
@@willnitschkeSo how did they end up spending more than they have
@bimsherwood7006
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@Richest_Person_in_the_World
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@willnitschkeIn MMT all debt has the other side of the equation (the asset holder), even foolishly taken on debt
@sdrowlette
4 ай бұрын
That clip at 1:17:33 where they point a gun at people is WILD! 😂
@Richest_Person_in_the_World
4 ай бұрын
Mosler does not necessarily glorify violence, he just says it's the way of history and government
@sdrowlette
4 ай бұрын
@@Richest_Person_in_the_World Right, it simply and explicitly illustrates how evil the state is.
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
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
4 ай бұрын
@@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
@SS-qk8oc
4 ай бұрын
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…
@joepaluka9031
4 ай бұрын
If you have not read Bobs book i urge you to do so. Its very good
@albionicamerican8806
4 ай бұрын
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
4 ай бұрын
Easy, price goes up. At $3 million an ounce, would there still be these problems you mention
@cloakbackground8641
4 ай бұрын
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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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
@garrettpatten6312
4 ай бұрын
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.
@redbigapplefloppa302
4 ай бұрын
Great episode! Very engaging and i think you're absolutely right about how to strategically deal with the mmt in terms of discussion.
@billmelater6470
4 ай бұрын
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.
4 ай бұрын
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
4 ай бұрын
No it's just that you don't get it. I'm an Austrian but I know MMT is true
@billmelater6470
4 ай бұрын
@@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
4 ай бұрын
@@Richest_Person_in_the_World What exactly do I not get?
@TheDuckofDoom.
4 ай бұрын
@@billmelater6470 I think it's sarcasm based partly on the username.
@rogermenendez4052
4 ай бұрын
All centralized economies have to deploy by coercion. There's no "free" in socialism.
@NGC-gu6dz
4 ай бұрын
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
4 ай бұрын
It could be that there aren't enough dollars in the system, compared to the tax amount proscribed
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World And how do you determine "enough" ?
@georgerogers1166
4 ай бұрын
At least Credit expansion has a deflationary end game. Printing cash has a hyperinflationary end game.
@Richest_Person_in_the_World
4 ай бұрын
It's all the same, you people need to forget this differentiation between cash and credit. All of it is fungible dollars
@georgerogers1166
4 ай бұрын
Until they aren't.
@willnitschke
4 ай бұрын
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
4 ай бұрын
I heard Zimbabwe and Argentina are huge fans of MMT. No issues with it at all.
@willnitschke
4 ай бұрын
@@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?
@Harpua1971
4 ай бұрын
Our politicians embraced MMT decades ago.
@Richest_Person_in_the_World
4 ай бұрын
Well, people did whine about the debt 15 years ago, and now the debt is much much larger and nothing happened.
@Harpua1971
4 ай бұрын
@@Richest_Person_in_the_World "Nothing happened" is doing a lot of heavy lifting in that statement.
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
@@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?
@Richest_Person_in_the_World
3 ай бұрын
@@willnitschkeThere was a mood back in early 2009 when annual deficits starting reaching $1T, that this was impossible or unsustainable. Well that was a generation ago and I'm sure deficits are $2T now, and the sky hasn't fallen
@metricdeep8856
16 күн бұрын
If the government wants you to have an option on their actions....they will give you one.
@88_AC
4 ай бұрын
You say many times how well made this doc is. Who produced it and how were they paid?
@Jalreal
4 ай бұрын
Warren Mosler makes supercars in his spare time. He's the progenitor of MMT, I would have to assume he funded a good portion.
@rsimpson69
4 ай бұрын
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?
@kylewatson5133
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
There is no renaming. How do you not understand basic principles of macroeconomics?
@Richest_Person_in_the_World
4 ай бұрын
@@alexsch2514OP was being sarcastic, but actually MMT explains that the government's debt is the citizens' dollar savings.
@TheCruxy
4 ай бұрын
I've never heard a person express MMT then say "so we can now fund [insert right wing mega project here]"
@CarrotCakeMake
4 ай бұрын
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
4 ай бұрын
But ipso facto the government's dollar is real
@heteroerectus
4 ай бұрын
No because only the government has the wisdom to print its way out of a bad situation
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
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."
@rutessian
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@travisthompson1679How are they taking your resources
@travisthompson1679
4 ай бұрын
@@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
4 ай бұрын
@@Richest_Person_in_the_World They are taking resources from everyone, just like a counterfeiter.
@Richest_Person_in_the_World
4 ай бұрын
@@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
@Rob-fx2dw
7 күн бұрын
MMT is for people who can't put 2 and 2 together but think they can and wonder why when they answer is 5 is that it is wrong.
@AtaraxiaaixaratA
4 ай бұрын
So many mouth breathers in one documentary? How did the universe keep from collapsing?
@JGS2295
3 ай бұрын
Unless I misunderstand, your position is that MMT has the mechanics of government spending and taxation correct but you just have a political disagreement with politicians concerning how large the public share of the economic output is? Surely then, MMT's application to the economy can then be used by you to make your case that government mobilisation of real resources should be much lower? It just so happens that most people who understand MMT's correct description of the monetary system as it is today tend to believe that there are large areas of society that are best left to public provision and private capital allocating resources via the profit motive would not be appropriate or produce desirible results.
@willnitschke
3 ай бұрын
You clearly misunderstood, then.
@Guti3737
4 ай бұрын
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
4 ай бұрын
Eh, this one needed to be detailed.
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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. 😉
@Richest_Person_in_the_World
4 ай бұрын
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
@johbowfor
4 ай бұрын
MMT - Magic Money Theory
@Richest_Person_in_the_World
4 ай бұрын
*fact
@willnitschke
4 ай бұрын
More Money Today.
@ThatonedudeCR12956
10 күн бұрын
You spend 35 minutes saying how messed up it is that MMT ignores natural resources. You then go into a tirade because MMT people are arguing that people using the only natural resources available should pay taxes? WTF is your actual thesis here? You're saying pro MMT is being argued for using poor logic and yet you spend 45 minutes offering literally zero evidence of inaccuracy in MMT and then directly contradict your only claim! Thanks but no thanks
@willnitschke
4 ай бұрын
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
4 ай бұрын
A hangover is not thought of as wealth but an account full of USD is
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World Then you're saying MMT is nonsensical?
@Richest_Person_in_the_World
4 ай бұрын
@@willnitschke No, MMT is correct in their statement that U.S. deficits are your nominal savings
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@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)
@paulmaakestad1624
27 күн бұрын
I tried but could only make it to 1:15:00.
@splynch1980
4 ай бұрын
MMT - Modern Marxist Theory
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
Yep. Added-Step Awthartarizm by a 125+year treeznez inzergnzy.
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@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.
@Richest_Person_in_the_World
3 ай бұрын
@@willnitschkeThere's still enough capitalism in the U.S. for it to chug along
@bigqueue
4 ай бұрын
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
4 ай бұрын
Look at government bonds. And think of them as simple bank accounts which have a Time Deposit aspect.
@garrettpatten6312
4 ай бұрын
She acts like only american citizens own govt debt....
@Richest_Person_in_the_World
4 ай бұрын
It's an asset for the foreigner too then. Same as you can own Brunei Ringgit and would be happy about it
@chris-st6sm
6 күн бұрын
listen folks, MMT is just a description of how the system works. that's it. nothing more. Conservatives have created a straw man time and time again and its always the same nonsense. You equivocate between 2 or 3 different interpretations of 'inflation' and then arrive at some kind of negative conclusion about MMT.. all the while skirting the issue of actually having a working definition for inflation. I guess ya cant spew misinformation so easily if play by the rules huh? If you wanna say that inflation is strictly a monetary issue, then you gotta actually have a legitimate argument to support that. GOOD LUCK because its flat wrong. as food and oil producers demonstrated during COVID, cutting supply keeps prices up and its got nothing to do with the monetary policy. 10 million Americans retired early leading to spiraling wage increase and it had nothing to do with monetary policy. the fact that these things did happen demonstrates that inflation IS NOT strictly a monetary issue.
@angelab1023
4 ай бұрын
This poor guy! Must be tough admitting he was wrong! Someone hand him a tissue! MMT has won the money argument!
@willnitschke
4 ай бұрын
I do wonder though, why every MMTer who posts a comment on utube, always comes across as sounding like a complete imbecile. It's not proof of anything, but it's a red flag this is ideology.
@Richest_Person_in_the_World
4 ай бұрын
Communism is still wrong, hoss.
@angelab1023
4 ай бұрын
MMT is not a value system. It’s a descriptive. I bet, everything that helps people, communities and planet is communism to you?@@Richest_Person_in_the_World
@willnitschke
4 ай бұрын
@@angelab1023 Yes MMT is 'descriptive'. But the problem is it's not descriptive of anything in the real world.
@Richest_Person_in_the_World
4 ай бұрын
@@angelab1023Yes, ownership of capital by the Commune is communism. You have FAILED to get rich by imposing taxes on those better than you 🤭
@Blendletan
2 ай бұрын
David Graeber is a Chomsky-style "anarchist". These people make me very sad
@napper422
4 ай бұрын
Cocaine for hunter Biden 😂😂😂!! Hands down my favorite part.
@Richest_Person_in_the_World
4 ай бұрын
Yeah he ratted himself out as a Trumptard
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@willnitschkeI don't follow left-leaning parties like the Communist Party of Russia of which your boss Putin was member for a lifetime
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World Of course, because to a warmongering Neo-liberal Leftard, that was never Real Socialism/Communism (tm), right?
@KennyCz87
4 ай бұрын
There is no such thing as a free lunch.
@Richest_Person_in_the_World
4 ай бұрын
But there is such a thing as printing insufficient money to satisfy the tax bill + savings desire
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World That's it. Printing money creates savings. 🤣
@longnewton1
2 ай бұрын
There is more than one cause of inflation. For example, as proponents of MMT emphasize rightly, it is often caused by resource and/or labour scarcity. If you hit resource limits and continue to spend money into the economy, this will likely lead to rising inflation. Hence managing resources and employment are a key focus in MMT. Inflation can also be a monetary phenomenon. If you pump too much money into the economy, this could lead to rising demand which then leads to inflation. But this is also linked to resource and labour limits. Inflation happens in this case because the economies productive capacity has become limited. This fits with the MMT narrative. Spending is not unlimited, it’s limited by the availability of labour and resources and if we near capacity, spending will need to be reduced. All that said, if the money flows to the wealthy, as it did after the 2008 financial crisis, they are more likely to spend their increased wealth on property and financial assets leading to property and asset price inflation.
@willnitschke
2 ай бұрын
Sure, there can be thousands of causes of inflation. But the elephant in the room is government money printing. The rest are usually mice running around on the floor. None of this is difficult unless you've got an ideology that requires it to be.
@Richest_Person_in_the_World
2 ай бұрын
@@willnitschkeSo how many percent would you say is the inflation rate in the U.S. currently; and you can also throw in your estimate for Russia
@willnitschke
2 ай бұрын
@@Richest_Person_in_the_World I don't analyze Russia as it's no longer an investible market. The official government measure is around 3. Truflation is measuring 1.7%. It may go negative as we head into deflation. Generally speaking adding 50% - 100% to the government measure historically is a good rule of thumb. But less me guess, you're going to play some retarded game whereby the current snapshot in time is all that matters, and the 25% loss of purchasing power for everyone doesn't count, right? Because that's the game idiots play.
@chrisk8978
Ай бұрын
MMT is simply a description of how our monetary system ACTUALLY works. Most people still don’t get it or refuse to acknowledge the truth. I have yet to hear or read a single critic refute any of it-and, yes, I’ve literally read a 400 page book of criticisms. Certainly, many policy proposals that flow from it are questionable. But policy proposals are not the same as the MMT itself. But post 1971, the US dollar exists by fiat and is created out of thin air. The implications of this are clearly still not fully understood by the traditional economic schools. Until this happens, productive discussions are not possible.
@willnitschke
Ай бұрын
Nonsense, it's a idiotic theology. It explains nothing, and is based on obvious confusions and misunderstandings of the monetary system. It's historical claims are historically wrong and simple refutations are merely ignored by the MMT crowd.
@Richest_Person_in_the_World
Ай бұрын
@@willnitschkeIt explains the public debt for instance. Lotta fools screamed back in 2008 that the sky was falling due to public debt
@willnitschke
Ай бұрын
@@Richest_Person_in_the_World No Dumbest_Person_In_The_World, it doesn't explain anything. There is no magic credit card which you never have to pay back, even if delusional idiots desperately believe in magic. And the 2008 financial crisis was about liquidity in the banking sector, NOT public debt. Go away, fool.
@Richest_Person_in_the_World
Ай бұрын
@@willnitschkeWhen the 2008 problem was ultimately fixed via deficit spending, you had a hysteric attack saying this would break the economy because a $1 trillion deficit was unsustainable. In fact the world is humming along fine 16 years later, which proves I'm correct and you are a New Zealand sheep herder
@timothycampbell9061
4 ай бұрын
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
4 ай бұрын
There is no such thing as Deep State, you fell for Trump's BS
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@willnitschkeThe term Deep State was basically started by Russia in 2016 as a pejorative for "democratic institutions."
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@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)
@ProgressiveMastermind
2 ай бұрын
Why can't you change your mind?? It's not about "wanting someone to be right" it should be about facts and reasoning! And don't talk about government "diverting away" ressources from the private sector - like steeling it or depriving the privates, because their fancy projects and many nonsense product with questionable production conditions is more important than stable bridges, modern schools, a health care system, a social network, police, fire fighters? Common, start getting serious about it. It is important for all of us especially for our kid's. I don't wanna risk the future of my child for stubborn neoliberal economists dominance!!
@willnitschke
2 ай бұрын
The government is mal investing and crowding out the private sector. This is a fact, even if it gives you arse pain. We can see the damaging consequences in economies where this is happening, with GDP slowing in proportion to the growth of government, and deceleration in the rise of living standards. For the most part, government should be limited, because collectivist solutions are almost inevitably horribly corrupt and wasteful.
@TheRoamingWatcher2024
4 ай бұрын
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.
@ThatonedudeCR12956
10 күн бұрын
I am 30 minutes into this and all you have said amounts to "MMT can't be correct because I don't like it." No offense, but I am not going to listen for another hour to see if you ever make a single verifiable critique of MMT. If it's incorrect then disprove it with data. Some of the criticisms you made were kind of accurate but not in any way that makes MMT incorrect. Everyone loves critiquing it but can't say why the other economic theories are more accurate or reflect reality more correctly than MMT. Nobody in the MMT camp (that I am aware of) is in love or even likes MMT. MMT is the economic model of last resort after you go through every other economic model available and see how flawed and unrealistic they are. MMT is literally how our economy functions. It's not because it's right or wrong. It's what we ended up with and weren't even aware that is what was occurring.
@Rob-fx2dw
7 күн бұрын
I hear your comedy - "MMT is literally how our economy functions. ". MMT is a play on harnessing people's feelings rather than their ability to understand credible facts rather than fantasy beliefs. It fails because it is easily shown to be false. - Such MMT ideas as taxes putting value into money and getting acceptance of money are about as believable as the moon being made of cheese. If taxes put value into money or got it accepted then the countries where inflation made it worthless could not have had that worthless money because they all had taxes. Taxes and worthless money that was rejected by the people and government itself together at the same time.
@Rob-fx2dw
7 күн бұрын
You say "MMT is literally how our economy functions. It's not because it's right or wrong. It's what we ended up with and weren't even aware that is what was occurring. Try explaining the idea: - Tax puts value into and acceptance of the money. Reality :- taxes did nothing to put any value or keep acceptance of the money in every instance where inflation made the money utterly worthless. Research Zimbabwe or the Weimar republic, or Hungary or a dozen other countries where despite taxes the inflation that made the money utterly worthless. Any sane reasonably intelligent person can throw that idea out the window because it is clearly false. Also if taxes made the money more valuable then more tax would make it even more valuable and 100% tax would make it infinitely valuable. Again any sane reasonably intelligent person can throw that idea out the window because it is clearly false. MMT claim:- Mosler and Kelton and other MMt economists say taxes do not fund government spending. Yet they can't explain where the money comes from and why if that is so they also says 'Taxes are to provision government'. They can't explain why the two statements are not contradictory. Again any sane reasonably intelligent person can throw that idea out the window because it is also clearly false. MMT idea:- - The government must spend first before taxes can be paid. Again utterly false because most money in the economy (about 90%) is created by private banks when they credit approved borrowers accounts. Those banks are not government and do not get the money from government or the reserve bank in order to lend. Any sane reasonably intelligent person can throw that idea out the window because it is clearly false. Throw that idea out the window because it is clearly false. Another MMT idea:- The treasury bond sales by the government are not made to fund government spending. Where does the money come from to fund government spending if not from taxes and treasury bond sales? MMTer's cannot explain. Throw that idea out the window because it is clearly false. MMT idea:- The national debt does not have to be paid back. Again false because the national debt is composed mainly of treasury securities (bonds) which were sold by the government treasury department to get money to fund the deficit budgets. Those treasury securities all mature and the holders must get paid out on maturity. If they didn't they never would have bought them in the first place. Throw that idea out because it is false.
@sharann3482
3 ай бұрын
58:50 before that we can see a stagnation in wages, causing a reduction in demand, causing decreased interest rates, increasing private household debt spending, causing the pump in the market which then later crashed
@willnitschke
3 ай бұрын
That's not how it works. For example, you can't have a "reduction in demand" while GDP grows at the same time. 🤣
@sharann3482
3 ай бұрын
@@willnitschke you have decreased private spending out of income alone, while have increased deficit spending
@willnitschke
3 ай бұрын
@@sharann3482 Your claim is still wrong. Even where there is increased government spending, someone in the real economy is on the other side of that transaction. You claimed there was a reduction in demand, but that doesn't happen when GDP is positive. Not hard to grasp, is it?
@BanBb1
Ай бұрын
After watching this again I have a few more thoughts to share. If you study MMT which I think you have by the way your arguments have changed over the years. When I first listened to your old MMT critique a few years back, your arguments were relating tp the Magic Money Tree talk. You have gotten beyond that, fortunately. Now you are reverting to the old criticism of “Crowding Out”, by implying that our so-called deficit spending takes away resources from the private sector. Again MMT is explicit on this subject. It recommends spending be done to put idle resources, like unemployed people who want to work, to work. Idle resources are those that the private sector is unable or unwilling to put to use. How can that be considered crowding out? After listening to this critique, I think that you are still wrong. Your argument is better, but still wrong. Throughout your dissertation, you continually cite examples from a currency user perspective. General Electric, is an example and is a currency user, that is just one example the farmer and Robinson Corruso are others. MMT states that to understand how our Fiat system works, you must understand the difference between currency issuers and users. That is what your presentation lacks, whether intentional or mistaken. Our Fiat currency is backed by the good faith and credit of the United States Government; a commodity does not back it. It has value because the government says it does. It is the system used by every other major nation that creates its own sovereign currency. This is the point that you are missing. Since we left the Gold Standard in 1971, we have been using Fiat money. That seems to be good enough for most of us, even you when you take home that paycheck. When the government spends, it spends with newly created money. The venders who receive that money understand that it has the value that matched whatever it is they are selling. Newly created currency is valueless until it is spent in the economy. Once the transaction takes place, the money spent has taken on its value. It is as simple as that. This is the basis of the Fiat currency system that is used throughout the world. Our currency is floated on the international money exchange. The actual value of it, with respect to other currencies, comes from it. Because our country is on a Fiat system, i.e. it creates its own sovereign currency and maintains any debt in that currency, it can never go insolvent unless Congress chooses to. Failing to raise the debt limit is an example of that. MMT maintains that our government has the ability to purchase anything that is for sale. That is not to say that there are no limitations to that spending. They say that inflation is the limitation, not the tax revenue it receives in a year. MMT states that tax revenue is destroyed, upon receipt, i.e. removed from the M2 money supply. It is not used to cover spending at all. The securities (bonds) that the government sells to the public and other countries, is not borrowing. Why would the government borrow money that it alone has a monopoly to create? The dollars received from the sale of securities are also destroyed and removed from M2. Under our Fiat system, there is no need to borrow, we do that to offer an opportunity to investors who hold dollars, to keep them in a safe place. I think we do this merely because it was just a continuance of what we did before 1971 and when we had to borrow, and people like it. If you follow this then it could be said that if government spending if allocated to items that our economy has the idlel resources to support, not a penny is added to M2, so how can that be inflationary. Let me finish this too long comment with another statement from MMT. MMT is not a partison idea, it is actually apolitical. If today congress understood the reality of how a fiate system operates, partisan politics would not cease. It would just take away the mundane arguments of "How are you going to pay for it/" away.
@Richest_Person_in_the_World
Ай бұрын
"Corruso?" Murphy's arguments are not better considering it's been 10 years.
@willnitschke
Ай бұрын
There is nothing to "study". It's a set of assertions based on nothing at all. Maybe hope and prayer. 😉
@cryptoemcee
4 ай бұрын
Thanks, Bob.
@metricdeep8856
16 күн бұрын
Monetary "Theory" = Facts of nature? Nope.
@TheRoamingWatcher2024
4 ай бұрын
Us treasuries are a reserve drain not an add
@pandafox12
4 ай бұрын
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
4 ай бұрын
There is no crowding out, new deposits are printed for each bank client
@willnitschke
4 ай бұрын
@@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.
@curtissnow9546
4 ай бұрын
Lol the highlight clip about monetizing the debt at the beginning had the opposite effect it should have
@philipvecchio3292
4 ай бұрын
🌈 Bob Murphy is the only Leprechaun who will tell you that there's no gold at the end of the MMT rainbow 🌈 🪙🪙🪙
@donald4nola
4 ай бұрын
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
4 ай бұрын
They speak of literal dollars. Which is something everyone ought to be familiar with
@TheRoamingWatcher2024
4 ай бұрын
Unless its owned by the banks and sold for over night
@mdaktaruljamanakter-b8l
21 күн бұрын
Lee Joseph Williams Ronald Thomas Matthew
@frederickmorris2216
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
@@willnitschkeYes but that should not be confused with outright scams such as Nigerian Prince emails and Bitcoin
@willnitschke
4 ай бұрын
@@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
4 ай бұрын
@@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.
@zorrowcg
4 ай бұрын
I am 100% against MMT, but if this is the best defense of the market economy you are capable of giving, then we are doomed. Pathetic.
@Richest_Person_in_the_World
4 ай бұрын
He doesn't seem to put any effort into comprehending MMT. Maybe he dislikes Mosler personally so he can't bring himself to
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World Unfortunately unlike you, he understands it too well.
@Richest_Person_in_the_World
4 ай бұрын
@@willnitschkeNot at all, he still uses the Liquor Store Analogy from 2012
@willnitschke
4 ай бұрын
@@Richest_Person_in_the_World Yeah become economics is totally different from what it was like in 2012. 😂
@Richest_Person_in_the_World
4 ай бұрын
@@willnitschkeHe had a decade to understand that the government is Unlike a household
@Jalreal
4 ай бұрын
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
4 ай бұрын
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
4 ай бұрын
Yes MMT explicitly says that taxes drive the currency
@Richest_Person_in_the_World
4 ай бұрын
@@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
4 ай бұрын
@@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
4 ай бұрын
@@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"
@Mikey-mike
Ай бұрын
Nonsense
@Wonderwall627
4 ай бұрын
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
4 ай бұрын
What does "argument against inflation" supposed to mean?
@Wonderwall627
4 ай бұрын
@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
4 ай бұрын
@@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.
@jmanakajosh9354
3 ай бұрын
The problem is nobody is quite sure how inflation happens because it's a product of complex price and resistance levels that we only measure a derivative of.
@jmanakajosh9354
3 ай бұрын
@@willnitschke It's the publicly stated goal of the Fed to have a 2% inflation target. (Of course that's not what they actually think see John Williams "Monetary Policy Strategies for a Low-Neutral-Interest-Rate World") By publicly stating this as the goal they induce the markets to make the change for them. 2% is considered the desired rate because of math. At 3% the value of money halfs to fast.
@SS-qk8oc
4 ай бұрын
I used to agree with you, but now believe that gold and silver, while beautiful and useful, make poor currencies.
@willnitschke
4 ай бұрын
Your beliefs and feelings don't matter.
@Richest_Person_in_the_World
4 ай бұрын
Why is that
@Jalreal
4 ай бұрын
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
4 ай бұрын
@@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? 😉
@bracholi
4 ай бұрын
What is the econonic system called where-by the government commands the economy and has entered into a public-private partnership with the private sector to effect social, political, and economic change?
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
Fashizm of a bkstr-led inzergenzy on the way to totaI gIobcoomerizm
@Exiled35
3 ай бұрын
Hmm, Could it start with F…..? In the international mode …. Com…?
@JoelCash-p8e
9 күн бұрын
Walker John Davis Kimberly Thompson Amy
@Richest_Person_in_the_World
4 ай бұрын
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
4 ай бұрын
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.
@Bullypulpit
4 ай бұрын
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
4 ай бұрын
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
@robertmiller5835
4 ай бұрын
Great video Bob.
@garrettpatten6312
4 ай бұрын
I've watched many What Is Money episodes, never heard someone say "money is political will"
@qwerty90615
4 ай бұрын
Stephanie's porn star hair and Mosler's sports car convinced me. I can trust them to create infinite symbols of wealth on a whim, out of nothing, congruent with what takes years of my blood, sweat and tears. What could possibly go wrong? They really need British accents.
@G_v._Losinj2_ImportantPlaylist
4 ай бұрын
Lolololol, around the time Jared gives us that clip, she looks rattled like she just discovered the scheme, but still has to work w/ these people to pass this off in front of everyone--another iteration of bkstr-led c0IIctvsm.
@Richest_Person_in_the_World
4 ай бұрын
MMT does not claim that moneyprinting creates real wealth
@qwerty90615
4 ай бұрын
@@Richest_Person_in_the_World And neither do I. The congruency is a function of manipulated market forces and coercion, like demanding payment in fiat for taxes.
@Richest_Person_in_the_World
4 ай бұрын
@@qwerty90615The fiat currency is just a token used for extortion. Their goal is to force people to work in government. If you can avoid working in government, you've avoided the extortion.
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