Andy Puzder on the prospect of stagflation:
Even as inflation continues to increase, Democrats in Washington are still talking about dumping trillions of dollars in new spending onto an already-overheated economy. This is the typical approach for progressive Democrats: Take a problem that government has created or exacerbated, blame anything other than government, and then argue that the solution is more government. It boggles the mind that there are people who still take this seriously.
If even a portion of Biden’s agenda ultimately becomes law — as Democrats are trying to do by breaking up the failed “Build Back Better” legislation into smaller, more politically palatable chunks — the inflation crisis is certain to get even worse.
Thomas Hogan on why mainstream economists don’t believe MMT:
Together, [the central claims of MMT] imply that, until we reach full employment, the government can spend without consequence. The government doesn’t need taxes or debt to increase spending. The Treasury can create new money and spend on whatever it wants. Doing so will not create inflation because money doesn’t cause inflation.
These key assumptions are the foundation of MMT. But they are contradicted by economic theory and history. They are claims that no mainstream economist would endorse.
Given the fact that mainstream economists do not believe MMT or its major propositions, why are we even talking about it?