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Thursday's blog post (27/03) is now posted (16:14 EAST) - What is the purpose of fiscal policy? Don’t ask Rachel Reeves! - https://billmitchell.org/blog/?p=62459 #mmt
billmitchell.orgWhat is the purpose of fiscal policy? Don’t ask Rachel Reeves! – William Mitchell – Modern Monetary Theory
Sick to death of the budget surplus deficit rhetoric being peddled at us by the opposition and mainstream media.
A budget surplus should NOT be the goal of any national government.
The goal and role of national government is to provide for the citizens of the Commonwealth of Australia and work towards meeting their needs and democratic demands.
The sooner the voting public realise this the better for them, Australia and democracy.
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@MsDropbear42 @amonkeyinsilk
All major parties in #AusPol are still stuck on the made-to-order (By Reagan & Tatcher) Chicago School of Economics’ Neo-Liberal Economic Theory (Absolutely debunked by the GFC) and that’s where the ‘responsible economic management’ mantra comes from. Polies might have heard of MMT (though some definitely know enough about it to understand it and compare) but they cannot comprehend it from their current perspective hence it doesn’t get consideration.
I’m not saying that #MMT is THE global answer to our economic woes, but as a Theory, it makes a hell of a lot more sense then #neoliberalism.
#ABCNewsAustralia Spreading the myth that Australia’s national budget is like a household’s budget.
The Australian government prints its own (fiat) currency. It can’t run out of money, like a household.
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#mmt is not a panacea but evaluating our fiscal problems without those tools in our box is akin to repairing a car with pliers instead of socket wrenches.
For there to be too many dollars, or pounds sterling or whatever, chasing too few goods and services - skewing "supply and demand" and causing runaway inflation - national spending has to exceed productive capacity. That's why every nation that has ever experienced hyperinflation, had to have the supply side of its economy destroyed first. That hasn't happened here in the UK, nor (yet) in America.
There's no reason to cut spending, it's a political choice by the wealthiest.
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Musk's DOGE team just let the cat out of the bag... that the US is a currency issuer.
Fed spending - which occurs via crediting bank accounts electronically - is what brings the currency into being.
No fed spending is from taxes or loans. The main purpose of taxes is to manage inflation.
See, eg, Stephanie Kelton, former economic advisor to Bernie Sanders:
https://alpha-week.com/realvision/stephanie-kelton-mmt-and-deficit-myth
AlphaWeek · Stephanie Kelton -- MMT and the Deficit Myth
Surprise! (At least to Elon)
Report: "Elon Musk Discovers the 'magic' of Modern Money".
Musk has discovered that the feds have "magic money computers that can just make money out of thin air."
Hold onto your hats & clutch your pearls, because Musk has just exposed a huge scandal.
https://stephaniekelton.substack.com/p/elon-musk-discovers-the-magic-of
The Lens · Elon Musk Discovers the "Magic" of Modern Money
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I do wish more people would read "The Deficit Myth"
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#Money making 
"The key to understand the implications of [a newly minted] coin is to recognize that we’re using the Treasury’s power of money creation, not the Federal Reserve’s."
"Government spending is backed by money creation and the simplest way to understand that (far simpler than understanding how the Federal Reserve works) is to see it. The coin is visceral and powerful in a way that other things aren’t."
Nathan Tankus https://nathantankus.substack.com/p/all-your-questions-about-the-trillion
Thursday's blog post (06/03) is now posted (16:53 EAST) - British government spending cuts will probably increase the fiscal deficit and make the 'non negotiable' fiscal rules impossible to achieve - https://billmitchell.org/blog/?p=62410 #mmt
billmitchell.orgBritish government spending cuts will probably increase the fiscal deficit and make the ‘non negotiable’ fiscal rules impossible to achieve – William Mitchell – Modern Monetary Theory
"The decision by the UK Labour government to reduce Overseas Development Assistance #ODA to (according to Starmer/Reeves logic) ‘pay’ for a rather dramatic increase in military expenditure is a classic example of how policy goes astray when mainstream economic thinking in general, and the British fiscal rules, specifically are used to guide policy."
"Wealthy nations are increasingly abandoning their desire to reduce world poverty and inequality and are instead using ODA for other purposes.
"For example, in recent years, Australia has diverted ODA funding from hospitals, education, infrastructure etc and pumped it into maintaining the privatised prisons on Manus Island and Nauru, where we have been sending people seeking refugee protection."
"The British government is not facing a financial shortfall in sterling other than the self-imposed fiscal rules.
"The fact that ODA expenditure does not really compete in terms of available real resources with military expenditure is also telling.
"Moving towards the 0.7 per cent of GNI target for ODA is financially achievable even with an planned 0.2 per cent of GNI increase in military expenditure.
"The fact is that the British government can achieve both goals."
Bill Mitchell: https://billmitchell.org/blog/?p=62391
billmitchell.orgBritain can easily increase military expenditure while increasing ODA to honour its international obligations – William Mitchell – Modern Monetary Theory
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Can the president override Congress on spending? It depends on #impoundment
Listen or read three minutes at #NPR: https://www.npr.org/2025/02/27/nx-s1-5308583/can-the-president-override-congress-on-spending-it-depends-on-impoundment
"We can, and must, tax the rich. But not because we can't afford to do anything without them. We should tax billionaires to rebalance the distributions of wealth and income and to protect the health of our democracy."
- Stephanie Kelton
PS: if not seen, watch the "Finding the Money" documentary.
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"@economics as a discipline has morphed into becoming a support mechanism to ensure private profit continues to be accumulated by the few while the rest of us increasingly struggle with various challenges that such a bias has created – deterioration in the quality and availability of housing, environmental degradation, diminishing employment quality, diminishing quality and availability of health care, increased corporatisation of education, etc"
https://billmitchell.org/blog/?p=62352
billmitchell.orgEconomics as politics and philosophy rather than some independent science – William Mitchell – Modern Monetary Theory
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@johnefrancis If only people understood the accounting of sovereign fiat currencies... All money in circulation, including in every private bank account, only exists because of government debt (with a private bank multiplier).
#MMT
Imagine if the federal govt took an asset entitlement for every cash or tax exemption business subsidy, infrastructure grant, health payment, education funding, military service hour.
The govt wouldn't have a deficit.
But it would be fucking stupid.
The govt has a deficit because it pays for those things with money it creates. That's what makes a society work. #mmt
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En parallèle, je conseille de lire cet article de juillet 2020 sur l'approche "on n'a pas les moyens" qui est la base économique de ces 50 dernières années, dont celle appliquée par le FMI aux pays africains.
Oui, il est question de Modern Monetary Theory (#MMT). Et, oui, je sais que de nombreux pays sur le continent n'ont pas une réelle liberté autour de leur monnaie, mais même ceux qui l'ont, n'en profitent pas (à cause du FMI).
The Baffler · The Money Printers | Dave DenisonOrdinary Americans live in a world of limits. They assume the government will eventually have to balance its budget just like they do.