Reviving a Lost Art
I had a great discussion earlier today with @anarcho-andrei and it got me thinking. Isn't this how people used to communicate? For those of you who don't know him, @anarcho-andrei is a Steemit witness (as an aside, he's doing a lot, so worth your vote) a writer (which is how I met him, over on The Writers' Block on discord) and also, as I learned today, a great debater.
So what were we talking about? Well, we were actually discussing the US Dollar and what gives it value--basically we were talking about fiat money. Over the last few years since I came across Modern Monetary Theory (MMT) I have had a few occasions to see its proponents in action, making predictions or commenting generally on current affairs. They have not been wrong yet. So I introduced Andrei to MMT (he may have already been aware of it, but I introduced it into our discussion).
If you have not come across MMT yet, this video from Steemit's own David Pakman (@davidpakman) (Can we claim you now, David?) is a great place to start: https://d.tube/v/davidpakman/kjgytgob.
In any case, the discussion was interesting, at times possibly even heated/passionate, but never at any time was it unfriendly, or uncomfortable. I may not agree eye to eye with Andrei on what the effects of the collapse of the petro-dollar system might mean for the US economy, but boy can that guy discuss topics.
It got me thinking. In this day when everything is so polarized, when friendships seem to require total agreement on the issues of the day, when everything is tribal and lines are drawn, the crossing of which can lead to threats of violence or worse, actual violence, here is proof that the art of discussion and debate is not dead. It is possible to disagree and be friends. It is possible to engage with the other side and really do your best to understand them--hell, even be friends with them. A discussion on politics does not need to end up with bloodied knives or cold shoulders.
So here's to you, Andrei, for reminding me that the world is richer for our differing opinions and that we improve ourselves by trying to learn more, and drawing in, rather than pushing away. Happy Holidays!
(Image from Pixabay)
I mostly disagree with the MMT, myself, but it does highlight one of the major purposes a government tends to set for itself: to create and stimulate demand for something. That's a theme I'm going to be writing about in the coming weeks and thank you for the reminder - I may include info on the MMT in making the argument that government spurs overconsumption.
The main takeaway for me has been that this is how fiat money works for most large economies post gold standard. It is more a description of what we are using than a theory. I think the theory kicks in after that, but in terms of describing how things work, I think it does that. Does it answer any questions? I don't actually think so. The discussions on what the ideal interest rate should be or what we should actually be spending on are still open for debate and I haven't heart any MMT proponent answer those any better than any other economist.
I'm so happy to have found more people on Steemit who are interested in discussing MMT (and macroeconomics in general).
@geke, I'd love to hear more about your disagreements with MMT.
@thinknzombie, MMT describes currencies in floating exchange rate regimes extremely well. Most of the literature tends to focus heavily on exogenous money (i.e. money which has been created by the national government) rather than endogenous money (the credit created by banks). I'm going to make a video about the job guarantee soon (before the end of this week, I hope).
The Austrian school tends to describe fixed exchange rate regimes that have a hard currency peg (such as Hong Kong) very well, rather than floating currencies, but I think that most people haven't realised that.
Hi @penston. I'd love to learn more about it. MMT continues to fascinate me. Following you now for when you make your video.
I finally posted my video about a job gurantee!
I love Andrei to pieces. He and I don’t always agree on everything either, and sometimes it’s big stuff. But he has a gift of being able to explain his point of view in a way that is both fascinating and informed. Besides that, I think folks would have a very difficult time combing this earth to find a more decent human being. I’m glad you posted this. :-)
excelente material de apoyo ... buena instruccion..!!