Loading ...Modern Monetary Theory And Boiling Frogs
Excellent piece. “Heavy taxation is unpopular. High interest rates are unpopular. Price inflation is unpopular. But if the State can blend taxing, borrowing, and printing in just the right amounts, then they can boil the frogs without them jumping out of the pot.”
https://quoththeraven.substack.com/p/modern-monetary-theory-and-boiling
“They [MMT] see, correctly, that holding a bond means that you can receive payments from Uncle Sam in the future, but then gloss over the costs of Uncle Sam servicing this debt. It’s a perfect example of a violation of what Henry Hazlitt described in 1946 as the art of economics: “The art of economics consists in looking not merely at the immediate hut at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
In Economics in One Lesson, Hazlitt relied on the work of Frédéric Bastiat from 1850. Despite its name, Modern Monetary Theory is full of old errors. The only thing new about it is the jargon they use to do something people have been doing for millennia: disguise the true costs of government expropriation.”