Modern Monetary Theory: The Last Progressive Left Standing

1:40 pm in Uncategorized by warrenmosler

No corras con las tijeras en la mano // Don't run with the scissors on the hand

"No corras con las tijeras en la mano // Don't run with the scissors on the hand" by pictfactory on flickr

The headline progressives are in full retreat. They have found out the hard way that their bleeding heart pleadings — ‘yes, the financial markets might destroy us, but how can we cut this or that worthy cause’ — don’t cut it. They have fallen into the out of paradigm world that takes it as gospel that the U.S. is at imminent risk of becoming the next Greece; where financial markets can cut off funding and ability to spend and force the giving up of national sovereignty and begging for an IMF bailout, or else, face the option of default or printing money, which launches one down that slippery slope to hyperinflation… bla bla bla…

And so to show they too are indeed fiscally responsible grownups who wouldn’t think of instigating such a financial crisis, the headline progressives more than agree that the federal deficit is indeed a very dangerous long term menace that demands appropriate attention. Accordingly, President Obama, on behalf of the Democrats, has proposed over $4 trillion of his version of deficit reduction over the next ten years, with “everything on the table” including Social Security and Medicare. The main difference seems to be that the Democrats include tax hikes, while the Republicans only support spending cuts.

The great irony is that with productivity at an all-time high, and with no actual shortage of the real resources needed to take care of our seniors at a level that makes us feel proud to be Americans, to care for the sick, to educate our children, and to provide for the public infrastructure and institutional structure that facilitates and fosters private sector output and employment, there has never been a better time for the progressive agenda. Read the rest of this entry →