So let me ask you this. If the U.S. “printed” 20T dollars (really just say it exists in an account). Then they start investing that in the market… The value of the money in theory would decay by 14% (rough math) but the market would thrive from the increase in buying.
That said. It would “hurt” the lower classes purchasing power at first. But the interest made off that 20T is enough to build every person in the U.S. a new house every 30 years assuming the average household is 2.5 people. At first you would be building new ones and repurposing old ones. But after 15 years or so, you would have the country all sans rent/mortgage payments, which frees up their money to be spent on things like resteraunts, movies, plays, sports, whatever it is people do. So the economy would be growing, while homelessness would be gone foreve and everyone would have a $250,000 equivalent house built/renovated every 30 years. Which because of the mass building projects and it all being purchased from one group… would likely be like getting a $400,000 in todays market. This doesn’t mean people can’t save and invest money to have a larger dwelling and size up, just that everyone would have the base $400,000 equivalent house in a restabilized economy where everyone is less stressed and free-er to spend money at ease not worrying about becoming homeless if something goes wrong.
Does this mean some people will choose to work less, maybe. But with automation growing the way it is, we really have less work and more people already. It would also give us the opportunity to build some new cities/towns built around more walking and less car dependency, which would promote public health and people not being as reclusive if they don’t want.
Idk, it would never happen, but I’m just saying it could probably happen and we choose not to because people think helping everyone is bad.
Edit: the number of stress based mental issues alleviated by this would be huge. Less reasons to murder and rob people as well, so crime would likely drop
I think there are flaws and oversimplifications in that statement even before taking into account the planetary boundaries and international development dynamics…
Basically the state can invest without causing inflation by printing money as long as it leads to activating productivity and not to competing with other consumers for goods and services which are at their limits already.
Btw I am not a macro economist by trade the mmt just makes the most sense in comparison to other (neoliberal or classic) models
So let me ask you this. If the U.S. “printed” 20T dollars (really just say it exists in an account). Then they start investing that in the market… The value of the money in theory would decay by 14% (rough math) but the market would thrive from the increase in buying.
That said. It would “hurt” the lower classes purchasing power at first. But the interest made off that 20T is enough to build every person in the U.S. a new house every 30 years assuming the average household is 2.5 people. At first you would be building new ones and repurposing old ones. But after 15 years or so, you would have the country all sans rent/mortgage payments, which frees up their money to be spent on things like resteraunts, movies, plays, sports, whatever it is people do. So the economy would be growing, while homelessness would be gone foreve and everyone would have a $250,000 equivalent house built/renovated every 30 years. Which because of the mass building projects and it all being purchased from one group… would likely be like getting a $400,000 in todays market. This doesn’t mean people can’t save and invest money to have a larger dwelling and size up, just that everyone would have the base $400,000 equivalent house in a restabilized economy where everyone is less stressed and free-er to spend money at ease not worrying about becoming homeless if something goes wrong.
Does this mean some people will choose to work less, maybe. But with automation growing the way it is, we really have less work and more people already. It would also give us the opportunity to build some new cities/towns built around more walking and less car dependency, which would promote public health and people not being as reclusive if they don’t want.
Idk, it would never happen, but I’m just saying it could probably happen and we choose not to because people think helping everyone is bad.
Edit: the number of stress based mental issues alleviated by this would be huge. Less reasons to murder and rob people as well, so crime would likely drop
So where is the question?
I think there are flaws and oversimplifications in that statement even before taking into account the planetary boundaries and international development dynamics…
Basically the state can invest without causing inflation by printing money as long as it leads to activating productivity and not to competing with other consumers for goods and services which are at their limits already.
Btw I am not a macro economist by trade the mmt just makes the most sense in comparison to other (neoliberal or classic) models