John Murray Publishers Ltd The Deficit Myth: Modern Monetary Theory And How To Build A Better Economy

Great intro to modern monetary theory.

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According to MMT, the sky is green

The book is written simply, clearly, it has a smooth flow, an acute sense of the essential while it is original and important. The book's accessibility is enhanced by the author's capacity as an educator which shines through the narrative.Her main thesis is simple but profound: The United States Federal Government as an issuer of currency has no limitations in spending and consequently can run consistently a budget deficit with the sole proviso that it does not run into inflation. In this regard it is placed in an entirely different position than households or even states which are currency users and as such must run balanced budgets.Viewed in this light, taxes are not a source of income to Government but rather a tool for mitigating wealth inequality. A tool used very badly since the 1980s with the result of a presently enormous wealth inequality in the United States, the worst since the gilded age.An interesting proposal in the book is for the Federal Government to offer employment to every single unemployed individual in the United States. Presently, the responsibility for the smooth running of the economy - essentially for controlling inflation - is entrusted to the Federal Reserve through the setting of interest rates. To ensure this result, the Federal Reserve has presently a target of 3.5 percent unemployment. But this by design leaves millions of people unemployed. The proposal in the book provides for a cooperation between the Federal Government and communities. The Federal Government provides the funding while the communities which have knowledge for productive employment would provide the jobs. In this way there would be a two way flow for the labor force. When there is not enough employment in the private sector, the balance plus work experience would be covered by the Federal Government. When there is more demand in the private sector, the flow would reverse.

Modern Monetary Theory (MMT) is a major part of the answer to the new economic system that the world has been waiting for for nearly 100 years. And especially after COVID it's MMT that will prevent young people today paying off the COVID debt for the next 30+ years. The problem is that most people I've heard who criticize MMT don't know what they are talking about. Dr. Kelton's book is very easy to read and understand and when you do you'll realise what a fantastic system MMT is. However, it will take a critical mass of everyday people to bring such a major change to fruition and that's why this book is a must read for everyone.