With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT redefines how to responsibly use our resources so that we can maximize our potential as a society. In her 2020 book, The Deficit Myth, economist Stephanie Kelton has a surprising answer: not really. MMT, as Kelton shows, shifts the terrain from narrow budgetary questions to one of broader economic and social benefits. And in fact, Kelton shows historically that the few times that the deficit (which refers to one year, as opposed to the debt, which is cumulative) went to zero, recessions followed. Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis. If paying off the debt helps balance the economy, then fine, but that’s unlikely. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country. This unconventional approach to economics asks us to reexamine how we think about. Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. The Deficit Myth (2020) lays out the basic tenets of Modern Monetary Theory.
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