Modern Monetary Theory: Spend Without Limits Without Consequences

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Modern Monetary Theory, or MMT, is unlimited federal spending, borrowing, money printing, inflating, taxing, and regulating. It’s not only Bidenomics, which was fully adopted in 2020; it’s Obamanomics, which is Democratanomics.

They think revenue doesn’t restrain them in any way.

The crackpot theory of endless borrowing wrecked the economy and the Democrat presidency.

Newt Gingrich refers to the so-called Modern Monetary Theory as big government socialism. It is.

“Under MMT, the crisis never ends. Proponents posit that because the dollar is the world reserve currency. The Treasury can sell bonds at low interest rates. Uncle Sam can spend and borrow limitlessly with no economic risk. As Stephanie Kelton, an economist at Stony Brook University, put it: “Deficits can help us fight a myriad of problems that plague our economy—inequality, poverty and unemployment, climate change, housing, health care, and more,” wrote Art Laffer and Stephen Moore in the Wall Street Journal.

“Free-market economists scoffed. History is littered with nations that tried to spend and borrow their way to prosperity: ancient Rome, interwar Germany, Argentina, postwar Britain, and more recently, Bolivia, Mexico, Zimbabwe, Greece, and Venezuela.

“But on the left, MMT caught on as an explanation for why Barack Obama’s nearly $800 billion stimulus plan in 2009 failed to yield anything like the promised 4% annual growth. They said the spending wasn’t enough,” they wrote in the WSJ.

Not Modern And Not a Theory

It’s not modern, and it’s not theory. Misguided economists have been doing this for eons despite common sense, and it always fails. For Democrats, it was a dream come true.

Larry Kudlow said, “Some common-sense principles contradicting Joe Biden is that you can’t tax your way into prosperity, nor can you inflate into prosperity, nor can you devalue your currency into prosperity.“

“Should the Democrats regain the White House and Congress, they’ll hold middle-class tax cuts hostage to a huge overall tax increase.”

Democrats Want to Tax Assets

“Left-wing luminaries such as Senators Elizabeth Warren and Ron Wyden are in favor of imposing a wealth tax on anybody making $50 to $100 million.

“They and many other Democrats would be perfectly happy with an unrealized capital gains tax.“

In other words, they want a tax on every asset you own. And they want to tax it every year. They will do this even though it’s your home, in your garage, hanging on your living room wall, or taking up space in a safe.

“Unfortunately, last week’s Supreme Court decision leaves the door open to that wealth-confiscating idea. And, as we have noted, the latest Congressional Budget Office baseline scorecard shows $2 trillion deficits as far as the eye can see, leading to a $51 trillion federal debt by the end of the next decade,” Kudlow said.

“A tidy borrowing sum that would amount to 122% of GDP. In peacetime, no less, without any emergency.”

Apparently, history doesn’t teach us a thing.

Canada is making the same mistake.


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