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View Diary: Let's Fight for a Progressive Agenda (102 comments)

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  •  The answer to your conundrums is that (5+ / 0-)
    Recommended by:
    fayea, 3goldens, divineorder, elwior, qofdisks

    Washington, as the issuer of our money, has to spend.

    May I recommend some attention to this explanation of Modern Money and how it works?

    Professor Wray's explanation for why political leaders lie is perhaps a bit facile.  Congress likes to deny that it has any control over the purse strings because then it would be held to account.
    The President, on the other hand, is contrained by the fact that Congress sets artificial caps on what can be spent. That the constraints are all imposed by Congress should be exposed, but then the President can't play hero, can he?

    We organize governments to provide benefits and prevent abuse.

    by hannah on Mon Oct 01, 2012 at 11:27:06 AM PDT

    •  Thanks for calling attention (0+ / 0-)

      To Randy Wray's presentation giving the lie to the view that the debt/deficit problem a fiscal, rather than just a political problem.

      It's also true that spending is determined by Congress through appropriations. But it isn't true that the Executive must pay for deficit spending with debt; or that the President is constrained from paying off the debt subject to the limit as it falls due, because a 1996 law allows the US Mint to create one oz. Platinum coins with arbitrary face values, for example $60 Trillion.

      Bernie Sanders needs to know that; because it's the solution to his problem of paying down the debt without having to cut deficit spending on needed social programs and the safety. One solution is outlined here.

      I think Bernie needs to stop caving to the frame that there really is a fiscal problem. It's not the progressive thing to do. He also ought to know better because his economic dream team includes Bill Black, Randy Wray, Stephanie Keltn, and Jamie Galbraith, all of whom can tell him that his acknowledgment that the debt/deficit is a problem is "loser liberalism."

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