"a living (minimum) wage", 'Universal Basic Income', austerity, “hiring off the bottom”, Job Guarantee, Keynesianism, Michael Roberts, Modern Monetary Theory, patching up capitalist production, Randall Wray, the Hartz labour ‘reforms’ in Germany, the private market, the Roosevelt New Deal
After two long and possibly turgid posts analysing Modern Monetary Theory, in this third post, I’m going to look at the practicalities – in other words, what are the policy proposals that MMTers put forward for the government to do in order to get more jobs at better wages and without provoking inflation?
Since the Great Recession, leftist economists have tried to refute the theories of neoliberal mainstream economics that call for balanced government budgets and a reduction in the high levels of public debt. The policies of austerity that flow from the neoliberal view have meant the slashing of welfare benefits, reductions in public services, real wage stagnation and a rise in unemployment. Naturally, the labour movement wants to reverse these policies that make working people pay for the failure of the banks and capitalism.
The usual alternative comes from traditional Keynesianism, namely that more government spending (by running…
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