Modern Monetary Theory is a fallacy that has gulled mostly college educated people into the stupid-happy belief that money will never run out. What a shock it will be when they find out just what will happen when it does.
You're right about the college education claim. I have a BS and a JD so I went (and paid my own way, BTW) for 7 years, and it took me a decade of experience afterwards in the real world to understand how smart, educated people can convince themselves that their "castle in the air" theories are true when they are anything but. Just like with communism- "we didn't try hard enough"/"it wasn't implemented right," instead of acknowledging that they got it flat out wrong, it's just double down time for those ivory tower idealogues. That tenure/ivory tower has them thinking that they will never have to actually face the consequences, and that has largely been true here. A shock indeed, if not here on earth, certainly when they face judgment for their actions.
You are an exception, and I'm sure there are many who understand that MMT is a lie. My son, with a PhD in Geology from Notre Dame, actually believes MMT, even though he certainly does not conduct his own finances to concur with this ridiculous theory. Sadly, he's a product of his indoctrination.
Econ 101 is long ago and tiny in my rearview mirror, but what the geniuses in D.C. have done with the economy, particularly starting with BHO and the "monetizing the debt fix" for the housing bubble, was just ludicrous. Flood the market with Monopoly money- a short term bandaid that left the underlying problems festering. That's when I started prepping, because I knew it was just a matter of time until this house of cards falls. Maybe it hangs together until I die of old age; that's about the best I can honestly hope for. I voted right along for people who pledged to start paying as we go, but something *always* comes up and we just can't do it this budget cycle. Now it's going to get even tougher to prep with the prices of everything already so high... Move out of the big cities; they'll never survive. Who knows, maybe a "hail mary" like an economical and safe fusion power system will happen along and push back the collapse? Thanks for posting this sobering warning, John.
There was social breakdown, and there was rewriting of the social contract. Many people would consider FDR to be a soft-authoritarian. Basically somebody who employed some authoritarian measures but in hindsight overall it was for the good of the people (tell that to people whose gold was confiscated but thats the point). So we were stabilized with an iron fist. Many people would consider changes coming out of that era to be revolutionary. Income tax withholding started in that era, obviously social security, and most of the alphabet agencies.
Id argue that the “modern welfare democracy” is unsustainable and always has been. Not to sound extreme, but I just dont think a Social Security, let alone Medicare/Medicaid are sustainable over the course of centuries for any nation. So the systems that placated people during the last era will collapse and out of crisis a new set of policies or institutions will rise to placate the current ailments.
An example of this prior would be like the Homestead Act fueling american growth and creating a thrill of freedom during the Saeculum between 1870-1930. Eventually with urban growth and running out of arable land the frontier was closed, and there was growing inequality and urbanity right up until Black Tuesday.
After WW2 the inequality was decreased and the american spirit reinvigorated with the GI Bill that fueled idyllic suburbanization. That vision of america placated people for a long time but now we are once again chafing and restless.
Modern Monetary Theory is a fallacy that has gulled mostly college educated people into the stupid-happy belief that money will never run out. What a shock it will be when they find out just what will happen when it does.
You're right about the college education claim. I have a BS and a JD so I went (and paid my own way, BTW) for 7 years, and it took me a decade of experience afterwards in the real world to understand how smart, educated people can convince themselves that their "castle in the air" theories are true when they are anything but. Just like with communism- "we didn't try hard enough"/"it wasn't implemented right," instead of acknowledging that they got it flat out wrong, it's just double down time for those ivory tower idealogues. That tenure/ivory tower has them thinking that they will never have to actually face the consequences, and that has largely been true here. A shock indeed, if not here on earth, certainly when they face judgment for their actions.
You are an exception, and I'm sure there are many who understand that MMT is a lie. My son, with a PhD in Geology from Notre Dame, actually believes MMT, even though he certainly does not conduct his own finances to concur with this ridiculous theory. Sadly, he's a product of his indoctrination.
Econ 101 is long ago and tiny in my rearview mirror, but what the geniuses in D.C. have done with the economy, particularly starting with BHO and the "monetizing the debt fix" for the housing bubble, was just ludicrous. Flood the market with Monopoly money- a short term bandaid that left the underlying problems festering. That's when I started prepping, because I knew it was just a matter of time until this house of cards falls. Maybe it hangs together until I die of old age; that's about the best I can honestly hope for. I voted right along for people who pledged to start paying as we go, but something *always* comes up and we just can't do it this budget cycle. Now it's going to get even tougher to prep with the prices of everything already so high... Move out of the big cities; they'll never survive. Who knows, maybe a "hail mary" like an economical and safe fusion power system will happen along and push back the collapse? Thanks for posting this sobering warning, John.
Why do you think that there wasn’t a revolution or civil war in 1929-40? I’m interested in anyone’s take on it.
There was social breakdown, and there was rewriting of the social contract. Many people would consider FDR to be a soft-authoritarian. Basically somebody who employed some authoritarian measures but in hindsight overall it was for the good of the people (tell that to people whose gold was confiscated but thats the point). So we were stabilized with an iron fist. Many people would consider changes coming out of that era to be revolutionary. Income tax withholding started in that era, obviously social security, and most of the alphabet agencies.
Id argue that the “modern welfare democracy” is unsustainable and always has been. Not to sound extreme, but I just dont think a Social Security, let alone Medicare/Medicaid are sustainable over the course of centuries for any nation. So the systems that placated people during the last era will collapse and out of crisis a new set of policies or institutions will rise to placate the current ailments.
An example of this prior would be like the Homestead Act fueling american growth and creating a thrill of freedom during the Saeculum between 1870-1930. Eventually with urban growth and running out of arable land the frontier was closed, and there was growing inequality and urbanity right up until Black Tuesday.
After WW2 the inequality was decreased and the american spirit reinvigorated with the GI Bill that fueled idyllic suburbanization. That vision of america placated people for a long time but now we are once again chafing and restless.
Just my theory.