Comment on This sign says it all.

• affiliate@lemmy.world ⁨7⁩ ⁨months⁩ ago

  the wikipedia page says:

  MMT is controversial, and is actively debated with dialogues about its theoretical integrity, the implications of the policy recommendations of its proponents, and the extent to which it is actually divergent from orthodox macroeconomics. MMT is opposed to the mainstream understanding of macroeconomic theory and has been criticized heavily by many mainstream economists.

  i don’t think your comment properly highlights how controversial MMT is. i’m not an economist, but i don’t think it’s fair to use language like “taxes funding things is a myth” and “technically nothing is funded by taxes and taxes are just a money void”, when those claims rely on such a controversial theory.

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  • someacnt@sopuli.xyz ⁨7⁩ ⁨months⁩ ago

    It’s not worth your time to refute one giving youtube link as a backing reference.

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  • Ottomateeverything@lemmy.world ⁨7⁩ ⁨months⁩ ago

    Yes this is all true, MMT is a theory. It’s in the name. Yes, it’s controversial.

    But those points have nothing to do with the validity of the statements I made, including the ones you quote. It’s a very broad economic theory covering how things should be done etc etc.

    My point is not founded on MMT, I referred to it as a “look this stuff up by starting here”. The mere fact that this is an even remotely acceptable implies the statements I made is valid - otherwise MMT would fall apart at its seams.

    Taxes funding things is indeed a myth, and they’re essentially a money void. Go read up on those specifics if you want to get into it. The video I linked has a literal explanation of this like 30 seconds later. When congress approves programs, they just allocate new funds to it, and move on. There’s no digging up taxes to point towards it.

    You could begin making an argument it has implications for the validity and reliability of the sovereign currency, but it has no real relationship to taxes. That’s just not how modern economics work anymore.

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  • masquenox@lemmy.world ⁨7⁩ ⁨months⁩ ago

    has been criticized heavily by many mainstream economists.

    In other words… it upsets the rich people that got us into this mess.

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• stevehobbes@lemmy.world ⁨7⁩ ⁨months⁩ ago

  I mean this is a cute clever thing that sounds smart that isn’t.

  The government pays for things. The government funds that through monetary policy that includes printing money, as well as raising money via taxes. Whether the government deletes a dollar you give them and prints another dollar vs transferring the dollar you gave them into their spending budget is super irrelevant.

  It’s functionally the same and either way, your tax dollar, whether “deleted” and replaced or transferred is still your proportional allocation of funding.

  This is real “I’m very smart” vibes.

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  • Ottomateeverything@lemmy.world ⁨7⁩ ⁨months⁩ ago

    Same could be said about your post. It’s very “haha I have a gotcha” vibes.

    Yes the government deletes money. And they also create money. That doesn’t mean they do or have to do the same amount of each. They can and do create more than they delete. They’re not funding programs and then making sure they delete the same amount in your taxes. That’s not how modern economics work.

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    • stevehobbes@lemmy.world ⁨7⁩ ⁨months⁩ ago

      Of course not. But none of that changes the fact that your taxes, in part, pay for what the government spends money on.

      For state taxes, where the states don’t control monetary policy, it’s even less true. But it’s not really true for the federal government either.

      Everyone who is paid in USD or pays in USD, in addition to people who pay taxes, pay for whatever we spend money on in one way or another.

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• dynamojoe@lemmy.world ⁨7⁩ ⁨months⁩ ago

  That has real sovcit vibes.

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  • Ottomateeverything@lemmy.world ⁨7⁩ ⁨months⁩ ago

    Not at all. Look up MMT. Modern monetary theory and economics are well beyond “spend taxes to fund programs”. Governments that issue debts in their own made up currency don’t need to “spend” money, they just give money to the programs they support.

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    • lud@lemm.ee ⁨7⁩ ⁨months⁩ ago

      So money goes in and gets deleted, and then they create money and they give it away?

      When I think of it, I do the same thing every time I buy something.

      The money in my bank account doesn’t get transferred, the bank just deletes it on their servers and then they create money and give it to the store.

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      • Ottomateeverything@lemmy.world ⁨7⁩ ⁨months⁩ ago

        Yes, they both create and delete money. That doesn’t mean that the two processes need to be equal or balanced.

        Your purchases do, or someone is owed their portion of the transaction. That’s not the case when the government is writing bonds or appropriating funding to programs. They can create money freely, regardless of the tax they collect. Taxes serve a different purpose.

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      • Not_Alec_Baldwin@lemmy.world ⁨7⁩ ⁨months⁩ ago

        As far as I understand that’s the definition of fungibility, right? Every dollar is interchangeable and identical?

        So there’s no functional difference between deleting $1 and creating $1 except semantics, compared to moving $1, as long as the total value doesn’t change.

        The government just deleting money and printing money to pay for whatever it wants suggests that those things aren’t equal, which would be the problem if it were true.

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    • tryptaminev@feddit.de ⁨7⁩ ⁨months⁩ ago

      You are aware of the fact that central banks are usually independant institutions and whenever the government meddles with them, that countries currency gets fucked by the market?

      Also in todays interconnected financial and real economy there is only so much control any government canexert iver its currency, because the currencies values is significantly determined by the exchange from imported and exported goods.

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      • Ottomateeverything@lemmy.world ⁨7⁩ ⁨months⁩ ago

        While both points are true, that still doesn’t change whether taxes fund these programs.

        Sure there are other complexities like “how much is too much? Can we just keep doing it forever?” but those questions have more to do with the labor force of said country and their exports, and almost nothing to do with their tax rates.

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    • RizzRustbolt@lemmy.world ⁨7⁩ ⁨months⁩ ago

      MMT is techbros just trying to say, “don’t look behind the microvaluation curtain, it doesn’t matter.” But in the amounts that they’re trading on, it absolutely does matter.

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  • RizzRustbolt@lemmy.world ⁨7⁩ ⁨months⁩ ago

    It’s actually anarchcommunists mostly.

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