MMT Is Fake Economics

Interesting to see how the MMT community always use the same trick: insult.
No, governments do not “create reserves” eternally by deficit spending.
No, government spending does not lead economic growth.
No, governments do not have better or more information about the demands of the economy than the private sector.
No, money creation is not neutral. It always erodes purchasing power of savings and real wages.
No, you don’t use taxes to “eliminate excess money” governments use it to extract from the productive to finance the non-productive.
No, one unit of deficit is not one unit of savings. You forget multi-leveraged funds and central banks purchasing with money created from nowhere.
No, supply and demand of money do not rise in tandem, avoiding high inflation, even less so when supply of money is a monopoly of governments that do not suffer high inflation.
No, government is not “the people” and government spending is not “public investment”. It is political spending.
If money printing led the economy, Argentina and Venezuela would be the most prosperous nations in the world.
Why is Argentina or others now dollarized? It was not so before. Because their citizens are not stupid and know that money printing to finance government spending is destructive.
Why do the Fed, BOJ and ECB get away with it? Because they increase money supply through the market and credit mechanism, and create excessive inflation in financial assets as well as higher real inflation than official CPI shows.
Stop believing in the magic money tree.

 

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