Re:US Federal Reserve raises interest rates for first time s...
by spiralx on Wednesday March 16, 2022 @11:21PM
(#30707300)
It's like the anthropic principle in physics IMO in that it can be taken either descriptively or prescriptively, and while the former is almost trivial in what it describes, the latter invariably ends up leading to significant consequences far beyond the initial description.
MMT proponents will argue that no one has ever properly implemented it.
However, an economic theory that is not effective in practice, given the realistic constraints of human nature and politics, is useless.
In theory the only way MMT works is to arbitrarily raise taxes to counter inflation. The Fed does not have the power to raise taxes, Congress does. But such a floating, variable tax rate is ripe for abuse of power and I don't know anyone who would not revolt under such a system.