Simple question which no one wants to answer: who gets the new money first (i.e., when it is the most valuable?) The answer to that question tells you who the theory benefits the most.
There is a simple answer. The government is the first to use new fiat money. Money gets into the economy by the government spending it into the economy for goods and services that it purchases. The government also takes money out of the economy via taxes and fees. When the government spends more into the economy than it takes back out, the difference is a deficit. When the government takes more money back out of the economy than it spends into it, the difference is a surplus.
Nooby, I hear your thoughts. You are channeling Dr. Lecter there. If you deny it, I will prove why it be true.
Thanks. So all MMT does is consolidate more power within the government. Which is why we are where we are today with Dalio's two economies. Even more picking of winners and losers. Help me understand why economists consider the government to be some sort of intelligent entity that does things for the good of society?
Simply said two things: MMT consolidates more power in the hands of government, and through government spending, the government picks winners and losers. Which of these is wrong?