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Here we can post our own thoughts about U.S. political developments in longer format than might be appropriate on (for example) Facebook. Postings here can be linked there, however.

Wednesday, November 14, 2012

Modern Money Theory and the fiscal-cliff hoax

Fiscal cliff is a fiscal hoax

Why are we concerned about the “fiscal cliff”? It will be easier to get cooperation on fixing each part of the “problem” AFTER we go over – so it’s not really a cliff at all.
Modern Money Theory (see Primer by economist Randall Wray) makes it clear that the “cliff” is a hoax to get us to cut social spending and reduce public services that majorities want.
Our focus should be on jobs jobs jobs, which we can afford! We have unemployed resources – workers as well as excess industrial capacity – which is all we need to know.
IF deficits and debt were a problem – which they’re not – our concern should be ameliorated by the fact that we can borrow long-term (10 years) at 1% interest. Surely there is work to be done – infrastructure to be repaired, children to be educated – that would pay us more than 1%?
Let’s get to work, get our unemployed back to work, start taking care of business, and stop hyperventilating about this fiscal hoax.

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