Milton Friedman thread

 

All good stuff here:

https://x.com/elonmusk/status/1872855650394619946

floridanow1

@floridanow1

The left today embraces MMT (Modern Monetary Theory) so they can print the dollar into oblivion, as long as it doesn't cause inflation -- the problem is they ignored that "it caused inflation" -- and they ignored it. MMT is embrace by Socialists since it's all about the expansion of govt. control. Milton Friedman and Modern Monetary Theory (MMT) represent two fundamentally different approaches to economics, particularly in terms of monetary policy, fiscal policy, and the role of government in the economy. Here's a breakdown of how they differ: Modern Monetary Theory (MMT): Government Spending: MMT suggests that a country that issues its own fiat currency can never "run out of money" in the same way a household can; thus, it can spend freely on public goods to achieve full employment, as long as it doesn't cause inflation. Deficits and Debt: MMT proponents argue that deficits are not inherently problematic if they're used to fund productive activities or if they don't exceed the economy's ability to absorb the spending without causing inflation. Government debt in a currency-issuing country is seen more as a policy tool than a financial constraint. Inflation Control: Instead of focusing on controlling the money supply to manage inflation, MMT advocates for managing inflation through other means like tax policy, price controls, or adjusting public spending based on economic capacity. Job Guarantee: A central tenet of MMT is the proposal for a federal job guarantee program to achieve full employment, which contrasts with Friedman's preference for market solutions to unemployment. MMT is very similar to Socialism --- this is why they embrace MMT. Similarities with Socialism: State Intervention: MMT advocates for significant government intervention in the economy, particularly through fiscal policy to achieve goals like full employment or public investment. This aligns with socialist ideas of using state power to manage economic outcomes for social benefit. Public Spending: The emphasis on government spending to fund public services, infrastructure, and social programs (like a job guarantee) might resonate with socialist ideals of state provision for public welfare. Reducing Unemployment: MMT's focus on full employment through direct job creation by the government can be seen as a form of social welfare, which is a common goal in socialist policies. Redistribution: By advocating for policies that could lead to wealth redistribution (through taxes to control inflation or fund public programs), MMT touches on socialist principles of reducing economic disparities.