Modern Monetary Theory (MMT) holds that government spending and accumulated debt doesn’t matter because the Country can create money endlessly.
Economists generally agree that in times of national crisis, deficit spending is desirable, if not essential to meet economic challenges.
The United States is not only living negative paycheck to paycheck, it is living far beyond its means.
Economic crisis notwithstanding, why is it Americans believe all the things they expect and desire from government do not need to be paid for? Why are they willing to waste billions upon billions of dollars on interest, but rarely more on taxes to pay the bills?
Politicians rarely equate spending and the need for revenue. Why? Because voters don’t want to hear it.
Adjusted for inflation, the two stimulus packages passed in the last nine months are roughly equal to what we spent fighting World War II over four years.
President Trumps’s departing words included “I hope they don’t raise your taxes.”
Why do Americans accept all this? The answer may be that many Americans live their lives in the same manner; living in debt and wasting money on interest to live a lifestyle above their means.
Uncontrolled debt either matters or it doesn’t, there are long-term consequences or there are not. Wouldn’t it be nice if we knew the answer now?