Monday, May 25, 2020

MMT -- helicopter money, and why it won't work

It’s too late for America to recover. It left it too long. It was arrogant and conceited, paying for things it didn’t need, like wars and mega-mansions, but not those it did. So it didn’t invest when it should have, but now the bill is due, but nobody can pay it. What do you call a society like that? Bankrupt. Just like most Americans are, only they don’t know it. What do you call a whole society of people, after all, who die in debt?America’s broke, my friends.

This article sums up the dilemma of the US, but then goes on to recommend helicopter money. It leaves out what all the economic and political "experts" leave out: sprawl.

Dropping cash on top of a failed consumer-product based system just adds fuel to the fire. The system won't change, it will still be based on individual purchases, and there will be even less money for public goods. The article does a good job of distinguishing between these.

The US needs to unwind sprawl. Make cities car-free, make education and healthcare free. Guarantee housing.