When comes to spending, there are no adults in the house, only a bunch of spending addicts.
Keynesians believe that during recessions lunches really are free.
Almost everybody likes receiving services from the government. Almost nobody likes paying for them.
Can governments run large fiscal deficits financed with new money without generating significant inflation? The experience of Argentina calls this view into doubt.
Government spending and borrowing has been and will continue to be seriously out of control, with dire longer-run consequences if not addressed, while addressing it would be far less of a fiscal disaster than it will be if the country is left to follow its current course.
Strong centralized nation-states are good at marshaling resources to defeat other nations in wars. But how have more recent “wars” we’ve fought against drugs, poverty, and terrorism turned out? Society has gone through staggering changes since 1941, and so have the problems we face. The left should think long and hard about these changes before planning its next round of wars.
If those on the left who subscribe to MMT believe political history will end once they finally implement their enlightened government programs, they are guilty not just of bad economics but of astounding political naivete.
With the ratio of debt to GDP exceeding 100 percent, a crisis is not unthinkable.