The German "stimulus" package does nothing to actually stimulate true economic growth. If German policymakers were smart, they'd be cutting taxes and spending, while abolishing regulations.
The government's plan for "contact tracing" to prevent the spread of COVID-19 relies on huge amounts of government spending, plus unproven science as to the nature of the disease.
The good news is that Stephanie Kelton has written a book on MMT that is very readable and will strike many readers as persuasive and clever. The bad news is that Stephanie Kelton has written a book on MMT that is very readable and will strike many readers as persuasive and clever.
The eurozone needs to understand that if it decides to increase taxes to address the rising debt due to the COVID-19 response, its ability to recover will be irreparably damaged.
Governments can increase GDP numbers simply by spending more, and this can reduce debt as a percentage of GDP. But what if we calculate GDP using only private spending?
As the federal government embarks on racking up an estimated $3.7 trillion in extra debt this fiscal year alone, it’s critical for the public to understand just how destructive such action will be.
The new Fed policy proposals being floated carry significant political risk, because they enjoy support not just from the redistributionist left, but also “business conservatives” happy to raid our future to make their pain stop.
