For the last 40 years or so the world has been subjected to an economic model that rips the heart out of humanity and turns everyone against each other. This model is known as neo liberalism.
However, there is a new model in town which seeks to replace it with a much more long term and kinder approach.
Modern money theory (MMT) is an economic model that has become part of mainstream economic thinking since the 1990’s. It aims to bring about policies that promote financial stability and the attainment of full employment.
Economists and political theorists across the planet are increasingly turning to MMT as a solution to the boom bust inequality dependent economics of neo liberalism.
Even before the multi trillion stimulus of multiple governments in response to Covid-19 there has been an increasing openness to a new model that creates much greater stability and creates an holistic approach in which individuals and the state are united in creating universal responses to major planetary problems. From climate change to disease to huge inequalities MMT is being seen by an increasing number as the most rational solution we have.
As reported in DW.com
‘The first example is the US. Because even though government debt is extremely high, inflation has not picked up. In February, it even dropped to its lowest level since September 2016. The proportion of voters, who see the reduction of the government deficit as the top priority, is also steadily declining.
The second example comes from the fifth most stable economy on the planet, that of Japan where the central bank has been experimenting with elements of MMT for some years now. With the help of the central bank printing presses, the government wants to put the highly indebted, demographically shrinking country on a sustainable growth path.
The Bank of Japan has therefore been buying mountains of securities that make quantitative easing programs elsewhere look small. Still inflation has remained historically low. How long the central bank can continue with its purchase program without losing credibility remains to be seen. It’s an exciting experiment that may pave the way for MMT — or it may bury the theory forever.’
As this fantastic short video explains very straightforwardly, MMT has to be taken seriously. This is especially the case now because those who support the old burnt out models will try to make capital out of the very high government spending that will be used to control current and future populations.
This is not about ‘right’ or ‘left’ anymore. This is about what makes sense for all of us not just the extremely wealthy.
For a much more detailed analysis of Modern Monetary Theory these are great places to begin:
http://neweconomicperspectives.org/modern-monetary-theory-primer.html
However, remember that those who seek to undermine this theory are either economically illiterate OR they have their own agenda to hoodwink us. Do not trust them.
We must learn and investigate for ourselves.
Jason Cridland
