Myths about the national debt and social security

This article by Joe Firestone on posted on the website New Economic Perspectives is a great summary of some basic economic principals that somehow elude our policy makers.

It’s ironic that some of the issues that affect us the most directly in our everyday lives are ones we find the least engaging to think about. We delegate our understanding to politicians or others who have a direct interest in promulgating misleading versions. Those versions have been lifted to the status of accepted truths on no basis whatsoever.

It’s worth reading the whole original article as well as the comments underneath it.

Key points:
-Our government is not like our household. It has the power to create money and can always pay its debts.
-The myth of crushing government debt is just that, a myth.
-Social security is not running out of money or in danger of insolvency.

There are lots of policy implications that flow from these facts.

Read here:
An MMT Fiscal Responsibility Narrative: Some Truths – New Economic Perspectives.

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