Stephanie Kelton’s The Deficit Myth is one of the most thought-provoking books I have read in years. Setting aside the fact that this reality indicates I’m a nerd, The Deficit Myth is an important contribution to our understanding of the economy and government’s involvement in the economy.
The idea behind The Deficit Myth revolves around the Modern Monetary Theory (MMT). The most basic understanding of MMT is that a government, like the United States, that controls its own currency cannot go bankrupt because it can create all the money it needs. Since the government cannot run out of money, taxing and spending policy is not used to pay for things; instead, government taxes and spends to control inflation (the rise in the cost of things we buy).
I will admit, I’m not ready to say more about MMT. I need to keep increasing my knowledge of such an important concept. I’m also not ready to say I completely embrace MMT as a strategy for the United States to adopt. That is why I so highly recommend The Deficit Myth. A book that sets forth an entirely new way of looking at the way government does something as fundamental as tax and spend is worth serious consideration. That is especially true when we know the current system is not only failing but is based on lies and gimmicks.
I thank Stephanie Kelton for really getting me to think. I love it when I can consider new ideas and think about new solutions to the problems that have been hurting us since the beginning of this country.