How to respond to MMTers | Hoppe

[AW-pwlx]

It’s like the people in the United States to say we need to have a $15 an hour minimum wage. And if we have this $15 an hour minimum wage our economy will grow and will lift people out of poverty. If that was the case why are we sending financial aid to any country in the world? Why wouldn’t we be telling Bangladesh just raise your minimum-wage to $15 an hour or higher and economic prosperity will be around the corner.

[AndersHass]

I do wonder if PFS 2020 will be canceled/delayed

[benko]

Show me an MMT economist who says "increasing pieces of paper makes the world richer".

[richardstrum]

How can pieces of paper make society richer? It's not an absurd idea. I can think of lots of hypothetical ways. You can't eat money, but, for instance, inflation can raise equilibrium wages above minimum wages levels, thereby rendering those laws ineffective, though, in practice, people will notice that real wages decreased. The important example is that the state can tax/print money and hire otherwise unemployed people. I don't see any reason, in principle, why that increase in output and consequent decrease in prices can't outweigh the undesirable effects of taxation/inflation in the eyes of most people. Whether these schemes work in practice is a different story.