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View Diary: Livestream at Noon: Summit on Protecting Social Security, Medicare, Medicaid, and veterans' benefits (8 comments)

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  •  Let's not confuse the New Deal and MMT (0+ / 0-)

    I know MMT folk are enthusiastic but from the outside it seems they are making a couple of possible mistakes including confusing  an accounting identity for reality (the trade deficit : private savings : budget deficit equation however formulated) and mistaking bond market behavior resulting from the odd combination of anti-Keynesian Austerianism and interest rates at the lower bound to argue for effective unlimited debt immunity for monetary sovereigns.

    The MMT debate is worth having but it has fundamentally bupkis to do with the equity considerations that underpin what is IMHO the most effective defense of the New Deal. One that by the way also worked during 70s Stagflation in ways that MMT might struggle. (The U.S. was just as much a monetary sovereign then, yet foreign and domestic creditors were demanding double digit returns to accept that sovereign paper).

    But either way I see that dragging Krugman-Wray into this serves any particular tactical purpose. It is a kind of MMT Absolutism that echoes some of the worst impulses of the other side. And like the excessive reliance on R-R by the Austerians risks putting too much weight on a theoretical reed than the current state of play justifies.

    BTW I am the Social Security lead for econoblog Angry Bear and we are practically begging for thoughtful defenses of MMT with or without reference to Social Security. Yet our experience is that most MMT folk would rather assign reading and assert 'obviously' than engage hand to hand with actual trained economists (and me-a wannabe economist). AB just moved publishing platforms to WordPress and so while I have publishing privileges I haven't buckled down to figure out the system. But could try. Or you could just use my name whe submitting stuff to the siteowner Dan.

    I just don't see an advocacy post and thread to be the right place for this particular debate, however needed in the bigger picture.

    ( And if by some chance you would argue that HVPCS is NOT simple MMT then all the more reason to shift to a different forum)

    SocSec dot.Defender at - founder DK Social Security Defenders Group

    by Bruce Webb on Thu May 09, 2013 at 07:09:36 AM PDT

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