Just Erase Debt With Fuzzy Math
Sanders’s socialist math is becoming more popular as DC hopes to ignore the national debt.
With the latest estimates projecting our national debt of $21 trillion to reach more than $30 trillion by 2025, lawmakers on both sides of the aisle have begun embracing a dubious coping mechanism known as Modern Monetary Theory (MMT). As National Review explains, “MMT essentially says that the government’s capacity to finance its debt is limitless. Since the U.S. government is the sole printer of dollars, it faces no binding revenue constraint because more dollars can always be printed.” Apparently money does grow on trees — or at least Treasury Department printing presses.
The fact that this MMT concept has been embraced by leftists like Sen. Bernie Sanders (Socialist-VT) shouldn’t surprise anyone — not when they’re out pitching new entitlements with a 10-year, $40 trillion price tag — but the fact that it’s begun to gain traction among some Republicans is rather alarming. Even hard-left economist Paul Krugman warns against MMT, calling it “a recipe for very high inflation, perhaps even hyperinflation.” No kidding.
The obvious motivation behind lawmakers’ acceptance of this flawed concept is that it absolves them of guilt for their lack of fiscal restraint and for adding to our nation’s massive debt. But those who believe MMT to be a debtor’s “get out of jail free” card should be reminded that they’re not playing with Monopoly money.
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