New federal reserve interest rates indicate that MMT (probably better known as modern monetary theory) is falling out of vogue?🤷🏻♀️ I kinda had that same feeling a few months ago and now it’s happening.
Which, kind of unfair because what MMT predicted would happen did happen (increased spending led to inflation) and their proposed cure (jack taxes the heck up) has not been impemented.
It’s pretty understandable that they flinched, since because of The Hunger, The Sickness, The Fighting (and I think I see a pale horse coming, riding many a mile) they’ve been spending so much that they would have to raise taxes to backbreaking levels.
Backbreaking for the rich. Fine for workers if we use a progressive tax rate like God intended.
While high inflation increases the wealth gap when (as is the csse now) CPI increases higher than wages. And a high wealth gap is good for them, they kid themselves into thinking, since if workers are desperate, labor becomes a buyer’s market and they can exploit humans on the cheap. (But the owner class is shooting their own foot with that policy because high unemplyment rate is a lot of value left on the table for them compared to if there was a yoke on every single worn and calloused shoulder out there.)
I’m not a proponent of MMT’s policies (unless we defeat the 40h workweek first)—their theoretical framework makes sense to me but I’m not necessily onboard with what they wanna do about it. Although I’ve heard a lot worse 🤷🏻♀️