Stephanie Kelton Profile picture
Sep 3, 2018 7 tweets 3 min read Twitter logo Read on Twitter
A core proposition in #MMT is that we can always create whatever money is necessary to maintain a full employment economy. The Federal Reserve building is named after the Fed Chairman who made the same point in 1939. #MarrinerEccles
Here's Eccles--a businessman and a banker--calling B.S. on business leaders and their argument that tax cuts & deregulation would unleash a powerful (trickle-down) effect that would boost output and employment.
Here he is arguing that tax cuts should be aimed at the real job creators--consumers --especially low-income workers. For economic *and* social equity reasons.
MMT 101 #Eccles
Or, as @wbmosler likes to put it, demand leakages (saving, taxes and purchasing imports) have to be offset or the output doesn't get sold.
Ok, this is offensive.
"My sympathies are all with the real interests of labor." ~Eccles #LaborDay

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More from @StephanieKelton

Sep 15, 2018
Government borrowing (debt) is not like private borrowing (debt). Let me explain. 1/x
Suppose I am the government, and I spend 10 greenbacks into the economy. Visualize them flowing from my hands into the economy. Now there are 10 green pieces of paper in the hands of consumers/businesses. 2/x
This is all income to someone. Taxes will be paid on a percentage of that new income. Let's suppose the people send 7 of those greenbacks back to the federal government, in the form of taxes, leaving them with 3 greenbacks. 3/x
Read 8 tweets
Sep 15, 2017
"There's nothing to prevent the federal government from creating as much money as it wants and paying it to someone." ~ Alan Greenspan
This should not be a controversial observation. We are not on a gold standard. The US government controls its currency.
It's a fiat currency, & the US can issue it at will. It never needs to borrow or tax in order to spend, and it can never "run out of money."
Read 14 tweets

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