The Chinese virus is bringing Modern Monetary Theory to life

In a nutshell, Modern Monetary Theory (MMT) is a policy whereby the federal government can print money with abandon.  Under MMT, there's little concern of the debt level or how, if ever, the debt will be paid off. The Chinese virus is accelerating America's embrace of MMT whether it is called that or not. Prior to China's viral gift to us, the debt level of the federal government was  $22.5 trillion dollars which is 106 percent of our gross national product  to which another trillion was projected to be added each year. Things are moving faster now however. Congress has just passed and President Trump signed a historic $2 trillion stimulus bill to counter the Wuhan epidemic. Included in the stimulus package are direct payments to millions of Americans, an unprecedented expansion in unemployment benefits and $350 billion is soft loans to small businesses. The political consensus is that this will be far from...(Read Full Post)
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