Good Grief, he doesn’t even understand his own MMT

OK, so this might be true:

Of course, MMT might say that this is not a challenge. And in some countries, like the UK, I would say that is true. It is only ignorance of the possibilities within the economies that meet the criteria for MMT to succeed that prevents them from having the funding needed for Covid.

But not all countries have their own readily acceptable currencies, or a well-functioning central bank. Many have tax systems that fail them badly. And many countries are also forced to borrow, and make international settlement of their debts, in currencies other than their own. What is the answer for them, given that the conditions for MMT to work take a long time to produce?

Yes, OK, Venezuela has done lots of MMT and as a result doesn’t have a currency that works outside its borders. That makes it difficult to buy vaccines. This could indeed be true. Therefore:

So what is there to do? This Is where I think that new, hypothecated, taxes have a role to play. There are two such taxes to consider.

So, make corporations – who didn’t cause coronavirus – and wealthy people – who also didn’t cause it – pay more tax with higher corporate income tax and a wealth tax. Hmm, in order to do what?

Third, something else that is necessary is a pool of revenue available for developing countries to use to make payment for the Covid vaccines and other medical supplies that developing countries might need which will be priced in the currencies of the developed countries that might otherwise be unavailable to them. So, for example, wealth taxes could be used to create a fund to pay for such vaccines, medical supplies and training and support that can only be settled using the dollar, pound, euro or yen, which are always currencies in desperately short supply in developing countries, and which are particularly so at times of economic crisis. The hypothecation is in this case potentially necessary precisely because most developing countries do not meet the MMT criteria of having a currency that is internationally acceptable, whatever the reason might be.

But if MMT works then we don’t need to have a wealth tax to pay for all of this, do we? Just get the central banks of the developed countries to print more money and we’re done – after they’ve given it to the poor countries to pay their covid bills that is.

If it’s foreign currency that’s the shortage then we don;t need to tax folks in rich countries to get it, we just get the printers in the rich countries to make it. If this isn’t true then nor is MMT.

5 thoughts on “Good Grief, he doesn’t even understand his own MMT”

  1. It’s hilarious

    Effectively the cretin is saying, we need communism on a global scale, preferably controlled and co-ordinated by him. I am sure governments and supranational bodies will be queueing up to say:

    ‘Listen, everyone, COVID ‘19 is posing a major challenge globally, but I’ve had an idea!

    There’s a guy who has three professorships at universities in the UK which are in the top 100 institutions nationally. He’s living by himself in a semi detached house in Ely, and he’s responsible for such internationally renowned things as ‘Country by Country Reporting’, ‘The Fair Tax Mark’, and ‘Sustainable Cost accounting’ and he’s got a suggestion that will solve everything’

    ‘sounds great, can we hire him? What other achievements has he got?’

    ‘well he’s been blacklisted by almost every major political party in England because he gets into an argument in a phone booth , and he’s barred 5,000 commentators from his blog, and blocked 20,000 people on Twitter’

    ‘Sounds like a man to take on all comers, what’s his going rate?’

    ‘I think he’ll settle for someone paying off his mortgage and giving him a pension’

    ‘let’s go!’

    Just beyond the realms of self- delusion….

  2. “Governments spend and then tax, and anyone who says different is a neoliberal fascist. Well, unless it’s me arbitrarily deciding to hypothecate a tax towards particular spending just because I have a pathological hatred of rich people and no grasp of the damaging economic implications of my idiotic ideas.”

  3. I thought tax in MMT world was to reduce inflation? The whole point being you tax people and destroy the money to take it out of circulation to reduce inflationary pressures. If you don’t destroy it and instead give it to various dusky natives to buy stuff from you with it’ll just end up back in your economy causing inflation.

    Or have I missed something?

  4. For some reason this one really struck me that this fool really is ready to run the entire freaking world, if he passed by someone doing brain surgery he’d have to barge in to tell them they’re not holding the scalpel incorrectly. And, of course, nothing should be going on without his review and approval (not a sparrow falls)…

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