In a rational world, Stephanie Kelton’s advocacy for Modern Monetary Theory (MMT) would not be of concern. Unfortunately, in a world where Kelton was appointed as chief economist by Sen. Bernie Sanders and included in President Joe Biden’s economic task force, her views hold weight. Recently, Kelton and her socialist allies released a documentary defending MMT titled “Finding the Money,” which I watched so you don’t have to.
MMT operates on the belief that a government with the power to print its own currency can always create more money as needed. The documentary argues that money is not simply a medium of exchange but a creation of the government, making the government the rightful owner of money. In practice, MMT is used by progressives to justify increasing debt without regard for consequences.
Kelton dismisses concerns about national debt and deficit, arguing that government spending actually benefits the private sector. Despite the real-world test of high inflation under Biden’s presidency, Kelton still insists that spending can reduce inflationary pressures. She suggests policies like reducing oil consumption to combat inflation, even when facing full employment.
Ultimately, MMT is a progressive ideology that distorts economic realities to support a collective approach to production. Kelton and her supporters aim to convince the public that government control over wealth and production is the key to prosperity, reminiscent of Marxist principles. Despite evidence to the contrary, they persist in promoting MMT as a solution to economic challenges.
