Bill Mitchell was pointing out an inconvenient truth when he said “Progressives are neoliberals in disguise / Greens are neoliberals on bikes”!
One of the Pure MMT for the 100% insights is that political ‘prescription’ MMTers are unwittingly peddling policies that an actual ‘neoliberal’ would love too.
For example, the unintended consequence of the progressive ‘Wipe Out The Student Debt’ agenda is more dollars flowing to the top 5%.
“Student loan debt was never a crisis in terms of macroeconomics. If we had a high percentage of home loans delinquent, of credit cards delinquent, if we had 30% of auto loans in delinquency, we would see it, in the economy; but not for student loan debt, why, because those loans are tied to the federal gov’t and the federal gov’t is a bank that has unlimited ability to borrow —so there’s no concern about that, there’s no runs on private banks with student loan debt.”—Logan Mohtashami
Also note that Logan is NOT bashing the Wipe Out The Student Debt ‘prescription’. In fact, he goes on to say that it’s for the voters to decide (and he actually does think that over time the federal gov’t will provide some form of free college because it’s not expensive compared to the rest of the federal budget). What Logan concludes here, however, is what Pure MMT has been saying all along (warning about feeding $$$ into the saving bubble INSTEAD of creating a feedback loop out of the savings bubble).
“Here’s the problem with ‘Wipe Out The Student Debt’. If you don’t understand how data works, student debt looks like this daunting thing and you believe that college-educated Americans are sitting in little tents eating ramen.”
“Here’s the breakdown, 70% of all student loans is actually under $15k—not so daunting. People with over $70,000 of student loan debt is a very small portion of society. Of these people who do have 70k – 100k of student loan debt, they are usually rich people.”
“These are the people that make money, that have healthcare, that have homes, cars and a 401k. Don’t worry about these people. Trust me. They are the people that make the most money, the people that work the most, and the people that have the lowest unemployment.”
“The ones that have the highest student loan debt are the people that are the wealthiest. So in a sense, by saying ‘Wipe Out The Student Debt’, you are facilitating wealth inequality,” Logan adds.
In addition, which Logan is happy to see, the (‘progressive’) New York Times agrees:
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P.S. Regarding the federal ‘job guarantee’ proposal, this was Warren Mosler’s tweet (a reply to a Global Institute for Sustainable Development’s tweet sharing a poll finding that says 52% of Americans support a federal JG, even more so if those jobs help mitigate and adapt to climate change. 66% support Green New Deal-style proposals):
“I see those jobs as ‘standard’ gov jobs with standard federal pay and benefits etc. The jg isn’t meant to replace/undermine ‘normal’ gov employment.”—Warren Mosler
Perhaps Mr. Mosler is now seeing what Jim ‘MineThis1’ Boukis and Charles ‘Kondy’ Kondak have been saying all along at Pure MMT for the 100%, which is that we already have a military and a civil service (we already have a federal ‘jg’) that could do those jobs.
It seems like Mr. Mosler (now that midterm elections, including his own, are over and he is back to thinking in clear economic ‘description’ MMT mode instead of political ‘prescription’ MMT mode) is getting concerned about MMTers framing their jg as being needed to do those jobs. Which would have the unintended (‘neoliberal’) consequence of replacing/undermining the military & civil service workforce—as well as all other (‘progressive’) automatic stabilizers already in place.
These ‘scholars’ are so quick to downplay federal taxation when it comes to peddling their dopey policy proposals (like having the federal gov’t spend $500B creating make-work JG ‘jobs’—during a labor shortage), that if you dare question the merit of using federal taxes on their ideas (if you don’t think a certain progressive agenda’s spending proposal is a good use of surplus funds), then the political ‘prescription’ MMTer will reprimand you for not understanding that ‘taxes are a false narrative’ (that ‘taxes are irrelevant’) and that you need to stop being a ‘racist’.
“You’ll see me fighting against people saying ‘the taxpayer dollar’ because saying it is a racist xenophobic trope that is used to great precision.”—Green Party of Pennsylvania November Conference Keynote speaker Steve Grumbine
“‘Taxpayer funds’ is a false narrative.”— Francisco Flores (@FFlorescpa)
“The proceeds from federal tax collections are irrelevant.”—Ellis Winningham
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Once upon a time, before MMT was hijacked by ‘scholars’ that put themselves in charge of ‘solving’ your problems and ‘helping’ people, MMT was the description not the prescription.
As they keep trying to self-fulfill their gloom-and-doom prophecies (while capitalism solves our problems and people help themselves), political ‘prescription’ MMTers, who want to dismantle capitalism and replace it with a cradle-to-grave welfare state, keep pushing fake narratives like ‘The US economy is a junk economy’. Just like the stereotypical (untrustworthy) used-car salesman, they keep using slick stories, like the ‘unconnected spark plug’, to make their sale for the ‘Job Guarantee’ (a Universal Basic Income with a soviet-style, make-work requirement).
Rather than condemning those unemployed spark plugs into a $500B federally-funded Job GUARANTEE program (during a labor shortage and that by ‘prescription’ MMT design doesn’t compete with private sector jobs); perhaps a better idea would be to connect them with a job TRAINING program (that gives them the needed skills to get private sector jobs). Which is exactly what the current administration is doing right now AND we are seeing good results (i.e. record-low unemployment, increasing wage growth —above 3% —not seen since the recession and all this Fed unwinding because the economy is getting stronger).
NOTE: Just to keep this post apolitical, it’s fine if you don’t credit Trump for that (and let’s just instead credit all the presidents plus We The People because we are all in this together).
The political ‘prescription’ MMT notion of a ‘free lunch’ (don’t worry about How Are We Going To Pay For It…’because MMT’) ignores the unintended consequences of good intentions.
Do you really think that if tomorrow, the federal gov’t started assigning the unemployed with a ‘guaranteed’ chore and gave them a ‘living’ allowance (giving them a fish so they eat for a day), that *poof* they would be better off (versus teaching them the skills how to fish so they eat forever)…because MMT?
Do you really think that if tomorrow, the federal gov’t started paying for an uninsured’s healthcare, that *poof* they would start taking better care of themselves and begin living a healthier lifestyle (versus a plan where the federal gov’t annually funds your own personal tax-advantaged Health Savings Account starting at age 19 which creates a greater incentive to live a healthy lifestyle)…’because MMT’?
Do you really think that if tomorrow, the federal gov’t forgave someone’s student debt, that *poof* they would become financially responsible, make sound spending decisions and no longer rack up personal debts (versus having the federal gov’t relax/reform bankruptcy laws on nondischargeable debt)…’because MMT’?
If so, then I have a used car to sell you that’s “running terribly, sputtering and with little power” but don’t worry, the only thing wrong is that “one of the spark plug cables is simply unconnected”.
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