There is a wonderful article that I’ve encountered on this European Election Day that – for me at least – envigorates the ideas contained within the concepts of Modern Money (MMT).
This is excellent ammunition in political arguments because it is both so concise and also itself incisive:
As elites literally claim human survival is “too expensive”, it’s crucial for movements to absorb this..chief insight. Money itself, although not always starkly a creature of the “state”, is a creature of law, just like the institutions through which it flows.
Of course the law is upheld by the state and the state is the law…
When we analyze money as public software, rather than private hardware,….
This needs emphasising and drawing attention to – this is a great aphorism. It also sounds good enough to challenge the financial world.
….we see political economy differently. For example, as Harris argues, any movement for economic justice must overcome the toxic trope of the “undeserving benefit recipient” …. In my view, MMT helps us challenge this divide-and-conquer strategy, by undermining the technical premises of “taxpayer citizenship” …. that rights should correspond to one’s nominal contributions to government coffers.
The National Insurance System was largely based on this contribution system, but at the time we were partly on the (nominal) gold system. So the Atlee government had little choice but to follow the scenario. Whether they knew how radical they actually were, without declaring it, I’m really not sure.
But we certainly now know that National Insurance is not a ‘contribtion’, but Tax – pure and simple…
Then the article says:
There is no ‘natural’ interest rate: the Federal Reserve sets the price, rather than the quantity of…money.
That’s just it! The quantity of money is set by governments and the idea that Central Banks should set its price is really not basically, in the least credible…..
Lastly, an aphoristic conclusion:
A democracy of consumers dependent upon an aristocracy of financiers is no democracy at all.
Which is, I fear, where we are today.