Might be worth including Automatic Stabilisers, which are conventionally income tax and social security payments. Describing how they work from an MMT point of view would be useful, and could lead on to the Job Guarantee.
Thanks, George. You are right. From an MMT point of view, that's where the Job Guarantee comes in. It’s a more effective stabiliser than supporting people when they are unemployed: you don’t lose their skills, you avoid many of the social/health probelms and there are countless jobs that need doing. And of course - you can use it to put a floor on wages. Thanks for pointing out that I've missed that.
As he says, "This article was triggered by the following comment by Neil Wilson on a previous article on my site:
What is interesting about Wren-Lewis, as well as your [another commenter -BR] comment, is this seeming inability to see the automatic stabilisers (particularly the spend side auto-stabilisers) - which require *no* human beings involved at all. They just work - instantly, spatially, automatically."
Brian has a somewhat novel approach to MMT, which is no bad thing.
Thanks George. That sounds interesting. I'll check that out. :-) Just as an aside, I've been reading his book, "Modern Monetary Theory and the Recovery". It provides a good overview of MMT as well as examining some criticisms.
Might be worth including Automatic Stabilisers, which are conventionally income tax and social security payments. Describing how they work from an MMT point of view would be useful, and could lead on to the Job Guarantee.
Thanks, George. You are right. From an MMT point of view, that's where the Job Guarantee comes in. It’s a more effective stabiliser than supporting people when they are unemployed: you don’t lose their skills, you avoid many of the social/health probelms and there are countless jobs that need doing. And of course - you can use it to put a floor on wages. Thanks for pointing out that I've missed that.
Hi Jim - this article, from Brian Romanchuk, on "MMT And Automatic Stabilizers" is a good read - http://www.bondeconomics.com/2017/10/mmt-and-automatic-stabilizers.html
As he says, "This article was triggered by the following comment by Neil Wilson on a previous article on my site:
What is interesting about Wren-Lewis, as well as your [another commenter -BR] comment, is this seeming inability to see the automatic stabilisers (particularly the spend side auto-stabilisers) - which require *no* human beings involved at all. They just work - instantly, spatially, automatically."
Brian has a somewhat novel approach to MMT, which is no bad thing.
Thanks George. That sounds interesting. I'll check that out. :-) Just as an aside, I've been reading his book, "Modern Monetary Theory and the Recovery". It provides a good overview of MMT as well as examining some criticisms.
Jim