Argentina has secured an IMF agreement and announced aggressive policies to reduce its fiscal deficit and inflation rate. But that might not be enough to comfort its creditors.
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.
The bottom line is that none of us can afford the true budgetary costs of the Democrat Socialist dream. And that’s just the financial costs. It says nothing about the stifling of innovation, of entrepreneurship, and of work under such plan. It’s amazing what twenty-five years can do to a political party’s ideology.
What would happen if local governments had a lot more control over policy? Some localities could lower taxes and provide fewer services, while others could do the opposite. Local school boards could have much greater control over curricula and measuring outcomes. And many aspects of the culture wars could be settled at a level where far more consensus likely exists.