Financing Big Government with the Printing Press

International Liberty

Back in January, I wrote about the $42 trillion price tag of Alexandria Ocasio-Cortez’s Green New Deal.

To pay for this massive expansion in the burden of government spending, some advocates have embraced “Modern Monetary Theory,” which basically assumes the Federal Reserve can finance new boondoggles by printing money.

I debated this issue yesterday on CNBC. Here’s a clip from that interview.

Wow, this Modern Monetary Theory (MMT) reminds me of the old joke about “I can’t be out of money. I still have checks in my checkbook.”

I don’t know how far Ms. Kelton would go with this approach. I know from previous encounters that she’s a genuine Keynesian and thus willing to borrow lots of money to finance a larger public sector. But her answer at 2:45 of the interview also suggests she’s okay with using the Federal Reserve to finance bigger government.

In either case…

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2 thoughts on “Financing Big Government with the Printing Press

  1. haveyouevernoticedblog says:

    I think she’s just trying to find a more equitable system because the one we have clearly is unfair. We should ALL pay our fair share. Why is it that middle class pays more than the rich in taxes? While there may be errors in some of her logic, vilifying her is not the answer. Let’s try to find solutions to the problems instead of shooting down every word she utters. Hate solves nothing.

    Liked by 1 person

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