Tea party address
Posted by WARREN MOSLER on September 29th, 2009
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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.-
MMT: Taxes function to regulate aggregate demand, and not to raise revenue per se.
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The funds to pay taxes and buy government securities come from government spending.
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September 28th, 2009 at 8:12 pm
Warren, thank you for website and the education you are providing people like me. I think most of your ideas are brilliant. Obviously, the question at what point does money printing beget inflation. Samuel Brittan had an excellent article on this very subject on the 15th of September. For your consideration, I think of your proposals much like I think of the supply siders and I hope the comparison does not offend you. The tax cuts have lead to increased tax “revenues” at the Federal level, but at some point there has to be an inflection point. Obviously, if taxes were cut to zero, revenues would be lower. At some point, over spending and money printing will lead to currency debasement, a lack of confidence, and ultimately inflation. The tricky part that needs to be addressed is the difficulty of regaining confidence (in a nation’s currency) once it has been lost.
For your consideration, I would like to humbly offer a suggestion as to perhaps better illustrate our monetary system to the general public. Take a blank sheet of paper draw a dollar sign on it and ask a member of the crowd if that person would except that sheet of paper for his or her television. Why would that person accept the paper you printed on your own that is intrinsically worthless? What side of that trade do you want to be on? Our monetary system is built on confidence.
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September 28th, 2009 at 9:14 pm
Hi W!
Great speech. I think you really explained it well. People were laughing occasionally because it is so outside of their understanding. When you get to those concrete proposals they were huge crowd pleasers! People know that taxes are too high right now, particularly on lower income workers.
Great one – sorry I missed it.
What is the “profits equation”? I would like to research this more!
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September 28th, 2009 at 9:44 pm
the income tax is highly counter cyclical which increases revenues with expansions and causes them to end if allowed to do their thing, as happened in 2006 with a little help from the sub prime fraud being discovered at the same time. and yes, over spending does cause excess demand and resulting inflation, but i’ve yet to see it here in my 40 years of observation, and when it did happen in italy inflation went double digit but life went on for over a decade with very high levels of real growth and prosperity. however people don’t like inflation, so my proposals are for optimal output and employment with low inflation.
the Levy Profit Equation should be on the levy.org website. it shows how profits are a function of deficits- public primarily but private as well, if i recall correctly.
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September 30th, 2009 at 1:07 am
You’ve got my vote. You did a good job of explaining but also pulling back from complexity to make simple points that people can connect with at a personal/financial level. Don’t lose sight of that need and you could go far.
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warren mosler Reply:
September 30th, 2009 at 5:36 pm
thanks!!!
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September 30th, 2009 at 1:43 am
If a doctor sees someone bleeding, he should offer to help. We live in different world Warren Mosler. My father was a military war hero, he gave everything to this country. Now the government wants him to committ suicide kervorkian style so they don’t have to PAY and tie up RESOURCES and STAFF to take care of him at the end of his life. I don’t know what planet you woke up on this morning, but it aint the one I am living in, pathetic, what a way to honor our veterans, assissted SUICIDE – GO GO USA! You must know some of those fake TV doctors Warren, where everything is nice and rosy and perfect, not the real doctors in the real world. I know many that if they see that veteran over in the street bleeding, they mash on the gas pedal of thier porsche or beamer or mt900 so they can get to the golf course or the superyacht on time.
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October 1st, 2009 at 4:39 am
[...] seems that conservatives in the US are starting to take to modern monetary theory. My colleague Warren Mosler has been giving modern monetary talks to the arch-conservatives in the US at the Tea Party [...]
October 1st, 2009 at 9:09 am
Right on Warren!
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October 1st, 2009 at 10:16 am
thanks! let me know what non financial types think about the speech if you can
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October 5th, 2009 at 2:29 pm
Sorry to say but most people I know are soo lost they are spouting BOMB IRAN, JEFF GORDEN, and WHERE ARE MY CHEEZY POOFS and BEER!
The truth only works if you have the capacity to understand all of the truth, I think Americans going to tea parties now is nothing but showing there greed and ignorance, We should have been standing up and calling foul along time ago!
I am not giving up though, KEEP UP THE GOOD WORK
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