Lacks a way to “pay for it”
Many times in American policymaking, elected officials, their staffs, and members of the media claim they are unable to enact meaningful policies to increase the quality of life for Americans because the United States lacks a way to “pay for it”. While there is seemingly always enough money to give defense contractors while cutting taxes for the wealthy, the middle class and working poor are often threatened with cuts to Social Security, Medicare, Food stamps, and Medicaid in attempts to “balance the books”. Afterall, the government has to accountable in its spending like a household right?
What if we got this all wrong? What if we never lack the ability to pay for goods and services? What if budget deficits aren’t the REAL deficits that matter? Watch the following video.
What did you think of Dr. Kelton’s presentation and ideas? Does this make sense or is she wrong? Why? What potential, if any, do her ideas on macroeconomic policy have for the United States? Are there any additional questions you would like to ask me?
You can listen to me discuss her ideas here starting at 22:14.
https://news.wjct.org/first-coast-connect/2021-05-11/hiring-issues-modern-monetary-theory-book-club-art-bikes
Sample Solution
Government deficits have gotten a bad rap, says economist Stephanie Kelton. In this groundbreaking talk, she makes the case to stop looking at government spending as a path towards frightening piles of debt, but rather as a financial contribution to the things that matter — like health care, education, infrastructure and beyond. “We have the resources we need to begin repairing our broken systems,” Kelton says. “But we have to believe it’s possible.” I thought Dr. Kelton’s presentation was insightful and her ideas made a lot of sense. She outlined the issue of our current economic system not being able to adequately address social inequality due to its focus on profit and growth, which is an important point that many often overlook or ignore. Her idea for a new economy focused on people instead of profits resonated with me personally as it would provide fairer opportunities for all individuals regardless of their background or circumstances. I believe she makes a convincing argument in favor of this change and I think it should be seriously considered by policymakers.
