For anyone wanting to better understand Modern Monetary Theory (MMT), I’d highly recommend the following:
A nearly 2 hour joint presentation (including extended Q&A) at the Columbia Law School by Prof. Stephanie Kelton of UKMC and investor and MMT pioneer Warren Mosler. The YouTube video is embedded below and you can also find it here (with comments) at the New Economic Perspectives blog site.
An audio interview of Prof. Kelton on Harry Shearer’s Le Show. If you prefer reading a transcript, you can find it here.
As I’ve said many times on this blog, an understanding of MMT opens up all sorts of positive economic policy possibilities, especially when compared to the current austerity-focused policies that are slowing and distorting growth, and threatening to do so even more severely in the future (i.e., it’s austerity, not federal deficits, that will place an onerous burden on future generations).
So I understand you guys will devalue the U.S. dollar as the East Asian economies do to their currencies. However what I’ve noticed about these economies is that they are closed off, as in foreigners have very little investment opportunity in places like Japan. So foreigners are not allowed to purchase anything in Japan. So Japan devalues its currency and then through regulation stops foreigners from investing in Japan and foreigners therefor have very little control over the Japanese economy, and therefor can only spend their yen on Japanese products or exchange it and devalue it more. So you want the U.S. to devalue its currency significantly and then the government to subsidize’ U.S. only companies’. This may help the U.S. short term but in the long run will it lead to a closing off of the world economies and a halt to globalization and would it be worth it? Wouldn’t it bring back mercantilism, nationalism and therefor war?
I’m just really wondering how as a consumer as your proposing an American government subsidized car is more beneficial to me than say a Japanese government subsidized car. I think that is the ultimate question you people need to answer. Since Adam Smith said the Japanese government subsidized car is ultimately more beneficial to me.