What do MMT economists theorize? "The Deficit Myth" #book

Posted By on May 8, 2021

A few times before I’ve thought, and blogged about MMT or Modern Monetary Theory, when it comes to newfangled economics. Personally, I (nor many economists) can accept the thinking or rationalize the TheDeficitMyth_StephanieKelton_Book2021_mlarge deficits and debt path our country is on. In order to better understand the mind-set, I decided to read Stephanie Kelton’s book “The Deficit Myth.” She has become a leading advocate for MMT and I’m hoping to be able to at least understand the illogical to me logic of spending TRILLIONS of dollars that our country doesn’t have for every wish list item politicians keep adding – much of it political payoff.

At some point stimulus payments, health care, education, infrastructure, climate change and every other kind of pork our government is printing money to fund “wants,” is going to be too much for an economy to bear … at least I think so???

Currently we’re seeing spending on steroids coming from Democrats running the House, Senate and Whitehouse … and like an irresponsible teenager on spring break with his/her parent’s credit card … it will eventually get declined.

Although, I’m not sure the spike in prices that we’re seeing at the moment is the kind of 1970-80s inflation (or hyperinflation) that will stay with us (or crash us) … or is being triggered by government’s reckless spending, but it sure worries me. WheelbarrowOfCashAll I know is that prices are rising, people are being paid to stay home and the deficit and BitcoinChart210504debt is growing. For those investing, just like every bubble I have lived through, the sugar high feels good .. until it doesn’t.

Unfortunately for those wanting to build this year, lumber prices have gone berserk (likely thanks to the pandemic shutdown, cheap money and pent up demand for houses). Question: Have you ever seen a long term price chart like this one below (well, besides cryptocurrencies!) HA!

LumberPriceChart210503_m

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Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
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