Stephanie Kelton again jumps the ship. The day before yesterday she promised a pony for every American, yesterday she promised to care for the unemployed, poor, vulnerable, elderly, and debt-laden students, today she vigorously promotes Alexandria Ocasio-Cortez’s Green New Deal.
Stephanie Kelton and the MMTers have good news for everybody: “Anything that is technically feasible is financially affordable. And it won’t be a drag on the economy ― unlike the climate crisis itself, which will cause tens of billions of dollars worth of damage to American homes, communities and infrastructure each year. A Green New Deal will actually help the economy by stimulating productivity, job growth and consumer spending, as government spending has often done.”
How does MMT solve any social/economic problem? By deficit-spending/money-creation.#1 Does this work? Yes, as long as the government can increase public debt. At present, nobody can say where the limit is. MMTers claim that there is none.
As a matter of principle, all these social/environmental programs can be realized either with a balanced budget or with deficit-spending/money-creation. This is known to governments and economists since time immemorial. However, the MMTers' unique selling proposition is that the one and the only right way is deficit-spending/money-creation.
This, of course, is NOT true. The point is that deficit-spending/money-creation does NOT help WeThePeople as a whole in real terms but only the Oligarchy.#2, #3 MMTers are NOT the real Friends-of-the-People. Just the opposite, they try to hijack genuine grassroots movements.#4
Basically, the political agenda of MMT is pushing public deficits. The economic rationale lies in the macroeconomic Profit Law which implies Public Deficit = Private Profit. From the macroeconomic standpoint, it does NOT MATTER AT ALL whether the deficit is caused by war spending, social spending, or environmental spending. From a marketing standpoint, though, it matters a lot. Military deficit spending does NOT go down so well with the general public but social/environmental spending does. A green label helps to camouflage the distributional effects.
With the sudden rise of Alexandria Ocasio-Cortez’s new environmental populism and the eclipse of Bernie Sander’s old social populism, agile MMTers like Stephanie Kelton have to jump ship and sell Wall Streets’s deficit-spending agenda in the updated bluff package of a Green New Deal (GND).#5
#1 How MMT makes everybody happy
#2 MMT, money creation, stealth taxation, and redistribution
#3 MMT is ALWAYS a bad deal for the 99-percenters
#4 MMT and grassroots movements
#5 Stephanie Kelton’s legendary Plain-Sight-Ink-Trick
Related 'MMT’s virtue-signaling distracts from failure/fraud' and 'MMT is NOT bold policy but spineless fraud' and 'MMT Progressives: stupid or corrupt or both?' and 'Fraud comes always in the cloak of charity, salvation, or threat of doom' and 'MMT Progressives: The knife in the back of WeThePeople' and 'Meet the MMT smart arses' and 'Q: How are you going to pay for it? MMT: By stealth taxation!' and 'No MMT illusions! YOU are going to pay for it'. For the full-spectrum refutation of MMT see cross-references MMT.
Twitter Nov 19, 2018, "Kelton Stephanie, Pavlina and Alexandria the Great"