Wray: Politicians Know That Government Can't Go Broke

Professor L. Randall Wray, on with Steve Grumbine of Real Progressives, discussing some political aspects of Modern Monetary Theory. MMTers have met with many politicians over the years, and many of them do understand some of the basic ideas of what it means to be monetarily sovereign. They know the US government cannot run out of US dollars, they know that there's no necessity to balance the budget, and they know that national debt isn't a threat. But for political reasons, they can't say these things in public.

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[commoncents]

Yes - Wray points out the fatal flaw in MMT as a paradigm changer. While MMT may paint an accurate picture of our convoluted and byzantine monetary system, it uses terminology and concepts which already have meanings that are firmly entrenched in the public mind. You can say public debt or deficits are a good thing but don't be surprised by the pushback. What is really meant is that government spending is a good thing. This is exactly the message than true monetary reformers are giving. Its direct, understandable and doesn't lead into the hour-long explanations that MMT invariable does.

[pebblepod]

Maybe once a few people break that boundary, many more will?

[Skipbo]

Why are you only speaking with "Progressive" politicians?