Wray: Monetary reformers have not yet fit their statements into accounting, which is necessary to figure out what theories are behind their ideas. “…and I’m not sure they’re capable of doing it. So you have to try to reconstruct what must be a coherent way of presenting what they’re presenting in a non-coherent way. So that’s what we’ve been trying to do. A lot of it is not coherent. The balance sheets don’t balance. They’re saying a lot of nonsensical things that just aren’t possible…. They completely misunderstand how the government spends, and the reality is it already does what they want.”
The idea that “taxpayer money” is the only thing that pays for federal spending is not just economically inaccurate, it is a profoundly sinister and insidious one for our society. It further enables and promotes the neoliberal “monetarist” austerity economics that guarantees that the people will never ACTUALLY GET the big programs that we need to NOT DIE, suffer, or go bankrupt.
“As far as what specifically would happen if the world stopped using the United States dollar for oil? The answer is, “Very little.””
An MMT tutorial in tweets.
Full transcript of interview with Graham Elwood.
Federal taxes do not fund federal spending.
Federal spending funds federal taxes.