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The Fiscal Deficit, Modern Monetary Theory and Progressive Economic Policy by Andrew Jackson The Bullet, Socialist Project, July 14 https://socialistproject.ca/2020/07/fiscal-deficit-mmt-progressive-economic-policy/ . . . "MMT rightly challenges the orthodox idea that government budgets should be balanced and that deficits should be incurred only to fight deep depressions when low interest rates no longer work. As argued by Keynes in the 1930s, deficits will not crowd out savings and private investment if the economy is operating below capacity. Indeed, public investment financed by deficits can “crowd in” private investment. And public investments financed through deficits and debt can create a more robust economy and infrastructure, leaving future generations with greater wealth and opportunities. Keynes, unlike the “bastard Keynesian” wing of mainstream economics, looked forward to the day when the economy would be driven by productive public investment with no need for the state to borrow from the rentiers living off interest income. "In short, the key ideas of MMT are not so much modern as a return to the radical Keynes and the left Keynesian tradition. Both hold that conventional policy results in economies running well below capacity much of the time, and both reject the mainstream view that the macro-economy should be primarily managed through monetary rather than fiscal policy. . . . "In short, MMT, based on the theoretical legacy of left Keynesian economics, offers us a way forward, but it does not free us from the very real constraints of capitalism." _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: https://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
