this post was submitted on 06 Feb 2024
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United States | News & Politics
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While private debt is the biggest concern for US, government debt does actually matter because as debt payments go up then less money is available for government programs. You can read detailed explanation regarding the mechanics of this here if you're interested https://geopoliticaleconomy.com/2024/01/12/debt-neoliberalism-radhika-desai-michael-hudson/
Does this conflict with MMT? Or am I misinterpreting
It does because MMT states that the government can just issue currency without any consequence. However, we now have plenty of evidence that there are indirect negative consequences associated with this policy.
So why do I hear so much about MMT if it's so easily disproven? Is it just a baby leftist thing?
MMT has basically been the dogma that all western mainstream economists subscribe to. Every time there's an economic crash, which happens roughly once a decade, more currency is issued to keep financial institutions afloat. We're now starting to see the results of this policy manifest themselves all around us.