DaisyAnne
MMT is a view of the economy Maizie, and one the government do not share. I would just like a government that moved away from killing off the elderly, sick and unemployed because of their almost religious belief in austerity.
If I used a word you find offensive I apologise.
The very basic FACT at the heart of MMT is that a nation which has a sovereign currency (i.e it is their own, unique currency) issues that currency into the economy. Currency issuing comes before taxation.
The rest of MMT is about how that fact can be used to inform government spending and it can be used in whatever way a government chooses.
Understanding that the government is the issuer of currency and that tax revenue is not the source of the nation's money is a complete game changer.
Here is an explanation:
Making sense of money
Although it isn’t necessary to read or understand the long history of money creation in order to understand the economy, there are some basic principles contained in the history that make sense of what we are talking about in MMT. Because most of us don’t think about money other than in terms of whether we can afford to pay for what we want to pay for, it is very easy to fall into the habit of thinking of the government spending and earning its income in the same way that we do. Because money has real value to us and it affects our everyday lives, we assume that the currency itself has an intrinsic value. Once we can shift our thinking to the idea that at government level money isn’t a commodity, but a tool for carrying out government purpose then the MMT concepts start to fall into place.
gimms.org.uk/fact-sheets/a-brief-history-of-money/
I didn't find anything offensive. I just think that talking of MMT as something to 'move towards' is mistaken because its basic principle already exists (sovereign governments have always issued currency) and has become more important since we moved off the gold standard in the early 1970s.