How Can We Afford Medicare for All?

Stephanie Kelton provides a really good answer to the question of How Can We Afford Medicare for All? She points out that the US currently pays TWICE what others industrialized countries pay. At first glance, it seems weird to ask how we'll pay for something that costs significantly less than what we're currently paying. The … Continue reading How Can We Afford Medicare for All?

Government Deficit Spending Creates Private Sector Surpluses

To be clear, this applies to currency issuing governments ONLY. This is true of the US Federal government. This is not true of the government of Texas. The US is the currency ISSUER. Texas is a currency USER, just like you and me. Having said that, the reason we have money is because the currency … Continue reading Government Deficit Spending Creates Private Sector Surpluses

US National Debt Never Needs To Be Paid Down

That's not me talking. It's Frank Newman, former Deputy Secretary of the US Treasury. Per Frank, the US national debt is nothing more than the sum of outstanding Treasury Bonds. There isn't a national credit card where we borrow from the Bank of China. That simply isn't a thing. The audio quality of the clip … Continue reading US National Debt Never Needs To Be Paid Down

Who Figured Out MMT? When? How?

The first published book describing how our modern economy works was published in 1993. The title is Soft Currency Economics: What Everyone Thinks That They Know About Monetary Policy is Wrong. The author is Warren Mosler. Who is Warren Mosler? Warren Mosler is identified as an Economist, when it seems that's true now in retrospect. … Continue reading Who Figured Out MMT? When? How?

What Does It Mean When Politicians Say “We Can’t Afford It”?

Consider that the US Federal Government is the source of ALL US Dollars in existence. Consider that the US Federal Government can create US Dollars at will, whenever it is deemed necessary. Consider that the US Federal Government's ability to spend money is not constrained by the availability of US Dollars, as they can simply … Continue reading What Does It Mean When Politicians Say “We Can’t Afford It”?

How Does the US Federal Government Pay for Stuff?

The short answer is through a Congressional Appropriation. This is a spending or appropriation bill that originates in the House of Representative. Per the US Constitution, all spending bills must originate in the House of Representatives. Where do they get the money? Contrary to common belief, they do NOT get the money through taxation. The … Continue reading How Does the US Federal Government Pay for Stuff?