Answers To An MMT Professor

AZ:  Since I am actively engaged in teaching MMT, I woulld be very happy to learn more CONCRETELY about the problems. So far, I have examined carefully, and have not found any issues or problems with what I am reading in the textbook and teaching to my classes.

Me:  MMT correctly identifies fiat monetary mechanics, but it deals almost entirely with the “problem” of government debt and so does not deal sufficiently with the much larger problem of the currently necessary continual build up of private individual and corporate debt.

It’s “solution” of a job guarantee resides entirely within the mindset/paradigm of Debt Only and current fallacies about the quantity theory of money and its causes of inflation. A job guarantee could obviously be an adjunct program within the new paradigm of monetary gifting for those people having difficulty finding purpose without putting in their 40 hours per week.

It does not see the monetary and economic significances of the quadruple power point of final retail sale namely:

1) It is the terminal ending point of the entire legitimate economic/productive process

2) the terminal summing point of all costs [including profit and the costs of capital goods] and so prices for every consumer item in the economy and

3) the terminal expression point for all forms of inflation

4) Along with the above three points it does not recognize the significance of the fact that the money, pricing and accounting systems are all digital in nature and hence the power of a digital monetary policy at the point of retail sale.

In essence, like every other economic theory except Wisdomics-Gracenomics which integrates and extends the relevant insights of virtually every progressive heterodox theory AND most importantly brings awareness to how to implement the policies of the new paradigm of Direct and Reciprocal Monetary Gifting, it is incomplete because it has both empirical and mental/paradigmatic shortcomings.

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