I
asked the MMTers if it was true that when people save or refrain from
"spending", that shrinks the pool of funds so the government must
inject more fiat funny money into society.
Tom
Hickey explains:
What do you think
will happen if saving erodes the amount of money for consumption? Let me guess.
"Prices will decline."
Well, we know what
actually happens. Prices don't decline fast enough to offset, so unplanned
inventory builds, businesses cut back production and lay of workers so that
unemployment rises.
When
commenter Paul wrote: "There is
another option, tax or confiscate all excess savings and spend it back into the
economy.
Yes, and in a saner
system this would be standard operating procedure in the case of gain through
rent-seeking, from which most of the saving in excess of reasonable provision
for future need (hoarding) arises.
They
know this to be true because MMTers know how our monetary system works. And because they know how the monetary system works, they can determine EXACTLY what amounts people should be allow to save in excess of reasonable provision for future need, right? These
conclusions follow logically and directly from noticing that the government can
create all of the “dollars” it wants to out of thin air. That's logical, right?
No one cares about your stupid arguments over at MNE, Bob. No one cares. Haven't you noticed?
ReplyDeleteYou are so right, Al Kaline. That's why there are usually zero to two comments when I don't comment and 45-80 when I do. I think I'm doing a fine job of boiling that 30 pound ball of MMT bullshit down to a marble sized ball of MMT bullshit.
DeleteMMTers, "progressives" and Keynesians of all stripes are obsessive totalitarians. No fact or argument is going to sway them away from their neurotic need to stick their stupid fingers into the productive process, which they do not and cannot understand. They truly think that the "economy" cannot function without their monetary and/or "fiscal" input. It would kill them to realize that they have no roll whatsoever in the process and the roll that they have is entirely destructive. They are pathetic and hopeless people.
DeleteMy job is to expose that mindset which is actually quite easy to do.
So democratic governance is totalitarian but corporations (even though being, by their very nature, unaccountable private tyrannies) are somehow not tyrannical?
DeleteIt's simply impossible for a "progressive" to comprehend the simple concept of crony capitalism. Gabriel Kolko's "The Triumph of Conservatism" was in vain.
Deletehttp://tinyurl.com/k2gsnep
Absent artificial support from the state, all that a corporation can do is politely ask people to purchase whatever it is they are selling. Like Borders Books.
DeleteActually, Bob, you're just a deluded idiot.
ReplyDeleteI really enjoy demonstrating that "progressives" are just neurotic, hate-filled totalitarian minded assholes unable to present a coherent thought. Thanks for the free demonstration.
Delete