Donald Trump Is Right: Deficits Don’t Matter

Donald Trump Is Right: Deficits Don’t Matter

….Trump later explained that he was merely referring to buying back existing debt at a discount if interest rates went higher, lowering the nominal value. This is somethingthe U.S. does routinely. But Trump went further when he told CNN on Monday, “This is the United States government… you never have to default because you print the money.”

Trump’s statement sounds a lot like Modern Monetary Theory (MMT), a tenet of economists who believe in de-emphasizing the need for deficit reduction because the U.S. controls its own currency. Balanced budgets, to MMTers, take money out of the hands of ordinary Americans who can put it to more productive use through job creation and consumer spending. The deficit only matters once you reach full employment, when overheated consumer demand can lead to inflation. But we’re nowhere near that point right now, meaning there’s plenty of room for deficits, without any possibility of default……

Sellest, mida me Ameerikas näeme praegu, võib väga vabalt kujuneda poliitiline revolutsioon, mis võib võtta globaalsed mõõtmed. Sandersist ei saanud revolutsiooni vedajat minu hinnangul. Ta ei ole kunagi defitsiitide kohta tõde välja rääkinud oma kampaanias, kuigi tal oli tipptasemel nõunik selles vallas.

About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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