how is the average 1.67. it is supposed to be 2.

8:41 "The idea that taxes pay for what the government spends is pure fantasy". Actually it's not fantasy but just as true as "people's income pays for what they buy using their credit cards". The only difference is that those who provide credit to governments usually can't force them to pay, so until they do, the situation is indistinguishable from the government defaulting. And the government defaulting is the same as levying a tax on its creditors.

Great synthesis!

MMT is todays reality. What differs from the theory and reality is that reality does not, currently at least, use governmental employment to offset recessions. Instead it lean towards interests rates to decrease investment, which triggers the real lowering of inflation rate. Which is that people lose their jobs in mass and less people spend. Lowering overall demand rather than lowering interest in business expansion or risk lowering real value of assets be it stocks (equity value in the stock, not estimated increase in sales and such that drive expectations) or other (owned land that is debt free, raw materials not extracted yet and so on). In my view I tend to see that those that argue against MMT or are "skeptical" of it often are the same ones that side with the elites and support monetary policies that inflate assets or retain assets as any fiscal or monetary solution to a bust. Clearly benefiting those with assets from the get go rather than the middle class and down. The latter which in practicality usually only tend to have a mortgage and cash rather than actual real assets (stocks, no debt house, business that can forward losses as tax deductions etc). What people tent to not understand is that we are already using MMT. When the US government, to use them as an example, vote to raise the debt ceiling, something they only do because the have laws that says they must vote on it rather than just do it and that in turn is used as leverage (opposition want X to vote) or propaganda (insinuate, wrongly, that the US is broke and that you should vote for "me" instead). They are in reality using MMT. When USA is in a war and prints 2 trillion extra to use outside the domestic economy and instead use it for warfare and other stuff in Afghanistan (google Afghanistan GDP and guess when the war started and stopped). They are using MMT principals, aka you can print as much as you like as long it does not cause inflation (those 2 trillions did not affect cost of milk and bread domestically in USA), aka overheats the economy, aka more money is printed than the "real" value of said national economy.

By definition money is a store of value where currency is not. The terms cannot be used interchangeably. Otherwise what would be the point..?! Money is a claim cheque like you'd receive at a laundry matt. The only claim currency makes is on your time and labour. That is it's only value. For those who produce more than they consume. The difference is your wealth. Which the powers that be would very much like to blur the lines and print into oblivion. Personally I'd start with getting the basic terms correct. Currency has never been linked to gold.

well explained ❤

Excuse me, did the government stoped intervening in the monetary system after Hayek and Friedman? Did they let the free market decide the interest rates? 2008 crisis was beceause of the government! and there will be another crisis if that doesn't change.

This very interesting and informative

Taxation is imposed to force the people into labor. It is to control the behavior of the population.

MMT is just a nice way of saying communism.

This is a very strwnge concept or point of view. In reality it only is a progressive tax system. Ifc you pay more taxes, even in % the more you earn. And ofc government gets more tax payments redeemed (ir as revenue if you like) when economy flourishs and specifically wages increase broadly. Where is the problem?government spending will also has to increase if prices rise or they can invest more into infrastucture etc. But usually people with incresing income find better ways to evade high taxes

Oh dear, economics do make a lot of unproven or not grounded assumptions 🙈 This very si.ple model disregards so much ...

Its not really working like this in real life, unless circumstances are very special (like before 1933) - at least not with your examples. We all experiences so many examples where prices for whole product branches decreased over time, like PCs, clothes etc., for various reasons. It usually lead to more consumption of more items. Also following (cost push) Inflation prices decrease again, technically a deflation - usually not followed by high unemployment

Oh, there are so many aspects of what can happen with this equation, not mentioned in the video. For example, ofc T and V might change upon changes of P. This equation may, upon disturbance, need a long time to return to an equilibrium, beeing an inequation for the most time causing dynamics. The formula is also likely too little complex to describe something like reality, missing many factors. Why did economics not employ proper scientists and data analysts for so many decades?

Love your videos! But you got it wrong how banks work! They DON'T lend on the savings!! Those are separated deals. They create money to lend to the private sector in license of the central bank aka government

Thank you for the video! There so much kore cool features of MMT and even more situations it can handle like creating ressources ans capacities where needed. Thereby, spending and taxing has to be thought with who and when receives public spent money and redeems taxes, respectively. Looking forward to more of your content in MMT 😎🙏🇩🇪

You didn't touch on the fundamental insight of mmt which is tha fiat money is understood best as double entry book keeping used be banks, and that the majority of money today is created by private banks in the form of loans. Loans with interest create money and that taps into the productive potential of an economy. Mmt applies this logic to governments as well, seeing spending and taxation as assets and liabilities, which is why its ok habe outstanding debts. The whole economy basically exists in its current form because of outstanding debts. If all debts were paid off today, the economy would basically stop, other than basic transactions like buying eggs at the market.

Government spending at this moment in time is boosting war and it's right in front of everyone's face, war and death from so called unknown circumstances, the real problem is people that should not be allowed to walk the dog that I don't even have, MMT is so much worse at the moment than giving the keys to the hen house to the foxes

how does one determine what economic capacity is?

MMT is counterfeit by the people who monopolize force. If anyone else does it they go to prison. The reasons they are wrong are the same because they achieve the same ends of debasing the currency and wrecking the economy so those who do not produce can steal from those that do.

This is video for ignorants, who doesnt understand, what was said in this vid anyways and are left to believe that it is good idea.

It’s time to stop calling MMT a theory. MMT >> MME Modern Monetary Economics. As you pointed out personal household finance (user) is not adequate to describe a nation - state fiat monetary economic system (creator of money). When Einstein first published his work on relativity it was called a theory. Today we refer to the physics of relativity as recognized laws of physics. So to it is with MME.

Well done sir ❤

Great 👍

Please explain why the rest of the world is buying as much gold as they can get their hands on?

Who would lend money to a debtor who doesn’t intend to repay the loan?

"Allah condemns exploitation, and He blesses charities. Allah does not love any disbelieving sinner." Quran 2:276 With Islam no inflation and no poverty

MMT is bs. That's all you need to know. If you don't believe me look at Maxim 1 when it comes up, it reads "Govt should budget like houseshoulds" (sic) These are the sort of people pushing MMT. Btw, three years later and no one else noticed?

MMT? Oh you mean the Bankers just admitting they are creating money out of nothing 😂

Excellent video

There already is a method to take money out of the economy, through the purchase of bonds. So the question still remains, why taxes?

Utopian extremism..

You need to add a discussion of bonds. Governments do not create money. They create debt ln the form of bonds which they sell to banks and the public in exchange for currency. They use the currency (97% digital) to fund their spending. Taxes are used to pay the interest and principle of the bonds. Currency creation is done by commercial banks when they issue loans.

Actually currency is backed by the goods and services the people in the respective country produce or provide. Not only those in the present but due to debt also those in the future. This might actually work as long as you have a growing population but is - similar to a Ponzi - when you have a declining population.

what an amazing theory .. why don't we just print all the money we think we want ... trillions .. what did i say? trillions? quintillions .. everyone should have a billion or two for lunch ... what freaking morons think of these things?

At 5:34.. don't sleep on the fact that they are selling to private sector... so the government funds more widgets, which increases supply and lowers the price so the private sector get some cheaper widgets which they didn't need, all funded by tax payers. Okaaaaaay. I mean, this video is good for making you think that perhaps government should not intervene in markets. If our governments are advised by this bollocks, we are sooooo fuuuurrrked.

All fiat currency goes the same way, as this video actually touches on 2:20. All governments know that with their ballooning debts, they have no option but to print, and this will go parabolic until the end of our currencies as we know them. The point of MMT is to pretend they've discovered some new magical theory (which isn't a theory by the way, it's just a label they're trying to slap on whatever they're doing) that they can claim makes printing into oblivion today not the same as Weimar Republic, Zimbabwe, etc. (as we are not in a time of war; it's all self-inflicted through dumb policy) and so none of us will ask any questions or blame them as to how could they be so incredibly retarded when it all collapses. This video should at they very least encourage you to look at Bitcoin and Gold. But mostly Bitcoin.

MMT isn‘t complex at all. It is rubbish rephrased.

Free thanks

MMT is a joke. Austrian economics is better than Keynsian and MMT. All you have to do is compare grocery prices over the past few years to know that government money-printing has destroyed all economies-of-scale benefits that we should be enjoying over time.

Great!

The biggest problem with MMT is the same one that Keynesian Economics has: REALITY. Politicians only apply the part that is beneficial at the time, do this long enough and the whole system collapses.

Total to bushite

rizz balls

MMT should be renamed MMH, Modern Monetary Hubris

Of what, exactly, are these 'Widgets' made? What are the sources of the raw materials that go into them. And what is the nature of this widget factory? Who built it? Who owns it? This video ignores the concepts of wealth and net changes in productivity brought about by advances in technology. But it is CERTAIN to gain some acceptance given the abysmal state of our so-called 'Education System', which would be more accurately described as an Indoctrination System. If MMT is the solution then it will make ALL problems simply, MAGICALLY, disappear.

MMT is how financial systems are destroyed.

MMT is junkfood economics already proven numerous times in history to not work. Just take a look at the last 10+ years of money borrowed, spent into the economy and generating literally ZERO economic activity. This is shown by Debt/GDP numbers being less than one. There should be a multiplier effect but in fact the government spending is horrendously wasteful in the big picture. Tell me where did the missing $800 Billion go in 2023? Debt grew by $3.1 Trillion yet economic activity(GDP) only grew by $2.4 Trillion which is supposed to be impossible yet the government found a way to evaporate this money for 2023, and even much more in the previous years.

That people wouldn't use dollars, but for the fact that they have to pay taxes makes absolutely no sense. For starters dollars are the accepted currency in the US. Anything you want to buy requires liquidity and for that dollars are needed. If tomorrow citizens didn't have to pay taxes, what would be the catalyst that would make them spontaneously think to exchange their dollars for some other form of currency? Makes absolutely no sense. People would go on using dollars just as they did before. So what if I don't have to pay taxes? There is more than tax requirements that prohibits people from abandoning the dollar ecosystem.

Why would this be bad? Wouldn't it mean everyone just buys what they need? It's only bad for people that want a materialistic society. That's leads to overproduction and consumption of our world more than we need.