Yesterday I discussed modern monetary theory (MMT) and how it’s become very popular in Democratic circles.
That’s because it allows for much greater government spending without having to raise everyone’s taxes. And everyday citizens could get behind it because it promises to fund lots of programs without seeing their taxes raised.
What’s not to like?
If MMT were just a fringe idea with a few fringe followers, I wouldn’t waste my time or your time on it. But it’s coming your way, so it is important to understand it.
If you missed yesterday’s reckoning, go here for a refresher.
The people who are thinking about MMT, who understand it at least in some superficial way, are the people who are driving the policy debate or running for president.
Many mainstream economists and money managers have attacked MMT, including Fed Chairman Jay Powell, Larry Summers, Paul Krugman, Kenneth Rogoff, Larry Fink, Jeff Gundlach, Jamie Dimon and Ray Dalio.