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Opinion | Biden Can Go Bigger and Not 'Pay for It' the Old Way


Biden Can Go Bigger and Not ‘Pay for It’ the Old Way
By focusing on how much revenue they hope to raise from tax increases on the well-off, Democrats risk limiting the scope of their ambitions.
By Stephanie Kelton
Dr. Kelton, a professor of economics and public policy at Stony Brook University, is the author of “The Deficit Myth.”
April 7, 2021, 9:50 a.m. ET
Credit.Matt Chase
Last week, President Biden introduced a $2.2 trillion infrastructure plan, calling it “a once-in-a-generation investment in America.” In a speech, he outlined many of the package’s details, including how to “pay for” it. A close look at those so-called pay-fors, however, shows Democrats are thinking about fiscal responsibility the wrong way. They could be on the verge of sparking some unpleasant short-term overheating of the economy, in which price increases accelerate and the purchasing power of our dollars falls somewhat. And if the final ....

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Future Monetary Theory | Dissent Magazine


Future Monetary Theory
MMT’s account of the origin of money is a useful corrective to the stories told by orthodox economists. But a deeper history of the social construction of money opens up more radical possibilities for rethinking the monetary order.
The Money Changer and his Wife, Marinus van Roymerswaele, c. first half of the sixteenth century (Wikimedia Commons)
Let’s hope this time really is different. A decade ago, in the aftermath of the
previous once-in-a-lifetime economic calamity, tentative early steps toward fiscal stimulus were repulsed by an international turn toward austerity. The American Recovery and Reinvestment Act of 2009 was famouslyreduced by noted math enthusiast Larry Summers from $1.2 trillion to $800 billion, before being watered down further to appease Senate Republicans. It was much too little, did not address the root causes of the ongoing crisis, and was offset by state-level austerity even before ....

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Who's Afraid of MMT? | The Daily Star


Who’s Afraid of MMT?
‘A proper goal of economic policy in a sovereign and developed country is to achieve full employment, buttressed by a guarantee of jobs to all who may need them.’ Illustration: Benedetto Cristofani
As anyone who has ever been responsible for legislative oversight of central bankers knows, they do not like to have their authority challenged. Most of all, they will defend their mystique that magical aura that hovers over their words, shrouding a slushy mix of banality and baloney in a mist of power and jargon.
As a result, tormenting central bankers is great fun. John Maynard Keynes famously tormented Montagu Norman, Governor of the Bank of England (BOE) from 1920 to 1944. Wright Patman and Henry Reuss, two US congressmen who chaired the House Banking Committee in the 1970s, did the same to Federal Reserve Chair Arthur Burns. I know that Reuss enjoyed it; I assisted him at the time. ....

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