Precisely why we require a new monetary and economic paradigm. Paradigm changes are so obviously great leaps forward that they cannot be denied. Everything in the body of knowledge/area of human endeavor adapts to the new paradigm….not the other way around as you correctly observe regarding what occurred with the REFORM of Keynesianism. A paradigm is a focusing, clarifying and utterly progressive single concept that creates an entire new pattern. Let’s have it. It’s only 5000 years overdue.
What’s all this figure-figure about taxes? MMT’s actual greatest insight is that governments don’t need taxation because they can create money….AS money INSTEAD of Debt, and distribute it as they see fit…and if they had an ounce of brains and ethics it would be to make the system serve the general populace first, last and always instead of the populace having to slavishly serve it….like now. Of course the best and quickest way for the government to do that would be to distribute a monthly universal dividend and immediately double everyone’s purchasing power by implementing a 50% discount at the point of retail sale that was rebated back to the enterprise granting the discount to its consumers.
The new paradigm of Monetary Gifting supersedes and progresses all other reforms and theories…just like all of the epicycles of Ptolemaic cosmology got brushed aside by Helio-Centrism and every other new paradigm has done in the area it has been applied to.
MMTers don’t fully grasp the aspect of Gifting their theory aligns with and affirms.
It’s not progressive.
MR. S: @Steven Hummel
“MMT’s actual greatest insight is that governments don’t need taxation because they can create money”
That’s not what MMT says at all; to disseminate that inaccurate interpretation of MMT is irresponsible, and gives ready ammunition to its mocking critics.
MMT absolutely recognises that governments need taxation. In fact, it’s essential to destroy previously created money, as well as to ensure acceptance of a fiat currency.
Govt doesn’t need the revenue from taxation as funding before it can spend, but that’s a different point entirely.
Me: “That’s not what MMT says at all; to disseminate that inaccurate interpretation of MMT is irresponsible, and gives ready ammunition to its mocking critics.”
Yes, well that’s always the cry of those who are not fully conscious of a new paradigm…right up until they see that it’s the next new truth. I’m sure there were many tribal chiefs of hunters and gatherers who laughingly mocked the first farmers saying, “Everyone knows you have to move around to gather fruit and hunt game. If you stay in one place…you’re gonna die dummy.”
“In fact, it’s essential to destroy previously created money, as well as to ensure acceptance of a fiat currency.”
To prevent what? Inflation? If you had a 50% discount at retail sale which is the TERMINALLY expressed place and time of consumer price inflation…how are you going to have inflation? As for hyperinflation that’s just another irrational fear because hyperinflations never occur unless there are catastrophic circumstances, priorly enforced indebtedness that a nation’s elite wants to end and the central bank is complicit with speculators who short the currency. And all you need to do to prevent the latter is a government to pass a law that any leveraged shorting of the currency by anyone will be considered “null and void”. And even if you allowed for a manageable 2-3% yearly inflation (which could probably be effectively prevented as well with rather simple and rational regulations) you’re still looking at an immediate increase in everyone’s purchasing power by 47-48%
And if down the road when everyone is a millionaire, maybe you could have International burn $10,000 day…or more intelligently Everybody contribute $10,000 to Burkina Faso day to help them ecologically industrialize and enjoy the wonderful heritage of productive potential that mankind has achieved.
All you really need to make such a system work is legal tender laws, an operational economy and a political elite with a couple of balls and more than three brain cells that cognites on the new paradigm and its aligned policies.
New debt will probably be needed for a very long time, but proportionally less and less with the new paradigm of Monetary Gifting, and that is why economies will become more and more stabilized. The paradigm of Debt ONLY and the ideology of austerity being the current insanity. Marx almost got it right, but rather than the state it will be Finance that will “wither away.”