Larry Fink and Public Spending - what about MMT?

On Dr Wolff's latest Economic Update, I became puzzled. The implication was that Larry Fink needed to have private funds mingled with public funds for Trumps trillion dollar infrastructure plans because " we're out of money." According to L Randall Wray, Stephanie Kelton and Warren Mosler federal taxes are not required to fund federal spending. In fact, congress can request any spending required and needed and this spending does not have to depend on anything other than sound spending on sensible projects that are good for our future and the environment's future. Dr Wolff was right that this is a hustle. However, why does Dr Wolff leave out the fact that federal spending does not rely on direct spending into the economy? Can't congress request this spending? Federal taxes do not fund federal spending. Does Dr Wolff agree with this? If not, please explain why Stephanie Kelton, Michael Hudson, L Randall Wray, Warren Mosler, William K Black and all the rest that understand Modern Monetary Theory are wrong

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  • Brian Schatz
    published this page in Ask Prof. Wolff 2017-04-14 17:19:06 -0400