MMT has the money creation structural process correct. Steve Keen is correct that accounting is important in understanding money in economics. Michael Hudson is correct that the financial system is a parasite on the economy. Now if heterodox economists would cognite on:
1) the fact that the present monetary and financial paradigm is DEBT ONLY
2) that this paradigm is a monopoly charter
3) that money/credit is created entirely via accounting entries
4) that a gifted 50% discount to the individual/rebate back to the enterprise price and monetary policy at retail sale:
a) mirrors the money creation accounting process,
b) ends inflation forever,
c) ends individual monetary scarcity,
d) ends systemic monetary austerity
e) enables fiscal freedom
f) ends the monopoly paradigm of DEBT ONLY idiotically granted to the banks and
g) a 50% discount/debt jubilee policy at the point of loan signing for all “big ticket” and green consumer products enables us to move with post haste toward an ecologically sane industrial policy instead of wringing our hands about the fact that we’ve gone no where fast toward saving the world from climate change and global warming.
Who’s afraid of the new monetary and financial paradigm?
I: I agree with Gerald Holtham: “MMT is a fine example of intellectual product differentiation: I am going to sell you the same soap powder as other people but I’m putting it in a new packet and calling it something else. There is not much in MMT that wasn’t in Abba Lerner 80 years ago.”
It is Functional Finance soap powder or even Chartalism in a new box. However, it is a soap powder that will clean some of the mud (muddle, uncertainty, doubt) out of the capitalist system. At the same time, it will not remove the capitalist stain itself. That requires sterner measures involving the most revolutionary detergents possible: those that deter the reactionary agents of capitalism, meaning the monied elites, their sycophants and apparatchiks.
Me: “At the same time, it will not remove the capitalist stain itself. That requires sterner measures involving the most revolutionary detergents possible: those that deter the reactionary agents of capitalism, meaning the monied elites, their sycophants and apparatchiks.”
Precisely. Like the new monetary and financial paradigm of Direct and Reciprocal Monetary Gifting and its conceptually aligned policies and regulations. Stop fighting losing battles, even against the present set of enablers and anti-social assholes and embrace the better (for everyone) mousetrap.
One quibble. Make that an EVOLUTIONARY detergent.