Nice article! I wish someone at the white house or congress would read it. One thing, maybe in a future article you could address the Clinton tax hikes, since many politicians and pundits are currently citing them as a justification for raising taxes now.
Bravo Warren! A Tour de force! So well written that even your average congressman should be able to understand it. Reminds me of an article I contributed to way back in January, 2001 with a title that seems somehow appropriate for your Huff Po piece. Apologies for not giving you attribution at the time.
If raising taxes on the upper crust has little effect on spending, then doesn’t that say taxes on them are realtively stable. So when the economy tanks, the taxes from that segment of the population stays constant. That would suggest smaller deficits from the auto stabilizers if they paid a higer proportion of the tax? In turn there would be less of a deficit for everyone to get the vapors over.
I see. Anyone that has been successful and doesn’t spend 99% of all money earned will now be labeled a hoarder (enemy of the state) and be forced to spend all and if they refuse will be hit with taxes that simply take away the money. Nice plan bro’
Too bad your article was spammed by that gerald4 guy who doesn’t have a clue (“freshly printed paper US Treasury Bonds”) but has 6378 “fans.” Huffington Post was good once, I think, like in 2007. It’s turned into a joke.
Thanks for the post, though. There’s always a chance you’ll get through to someone.
Hello i see many of your videos, is right this rough calculation?
Italy have 2000 bilions of debt, and divided for the 60,000,000 of people makes 33,000 €uro per inhabitant, but 50% of rich is in the hand of the 10% of the italians. So with 15,000 per inhabitant we make our internal trade-exchange, but:
1) Without our central bank (and BCE pump up interest) and with fiscal compact we can’t raise the amount of that money.
2) And with the 55% to 70% taxes, in years we will give all the circulation money, and if not possible we will sell our goods, property, to pay the taxes and the normal living, until to hit the bottom.
Its roughly right? Or i don’t understand economy etc…
Mosler is correct in that as a money printer within a fiat currency system, solvency in not possible by definition.
Problem is that the same fiat currency system will eventually implode. Like any other pyramid scheme you constantly need a larger base at the bottom (new money coming in) to keep the scheme from collapsing.
Oh and the 7 innocent frauds apply equally to ponzi / pyramid schemes – would like to see a MTT person put together an argument the compares MMT to a pyramid scheme and tries to show the two are not the same.
It is clear to me from many of the comments to Warren’s article that first we will need to overcome much fear before a argument based on mmt logic will work. For some believing MMT is even more terrifying then believing the conventional wisdom. For example, telling people that the only constraint on government spending is inflation reinforces their fear that the government will keep spending until their dollars are worthless. Telling them that money is created by typing on a keyboard is even scarier. I think we need to remember that for many MMT sounds like witchcraft. I’m just hoping for wide spread enlightenment before Warren gets burned on a stake.