In this week’s episode, we discuss sectoral balances and why deficit spending is a good thing. Just like every action has an equal and opposite reaction, so does the economy. Every surplus must have an equal deficit to counterbalance it.

In our first video clip, Professor L. Randall Wray explains that the sum of all the surpluses and deficits must be zero. For convenience, MMT divides the economy into 3 sectors: the government sector, the domestic private sector, and the foreign sector. The private sector almost always wants to run surpluses, because people want to save money for retirement and other personal needs. That means that one or both of the government or the foreign sector must run a deficit to supply that income to the private sector.

In our second video, Real Progressive’s own Steve Grumbine provides an artistic masterpiece to help further explain sectoral balances and why government deficit spending help refill the economic bathtub. Grumbine explains how once one has a basic understanding of how MMT works, you will see deficit spending isn’t only necessary, but a boost to continue “refilling” our economic bathtub.

In our final video Professor Kelton stated, “we do not need a balanced budget, but rather a balanced economy.” To strike that balance, we must have an equal and opposite reaction between government deficits and private surpluses. Kelton concludes that once we get past the mindset of deficits being a terrible stain, we can see deficit spending actually refills our proverbial economic tub by funding bold progressive policies that will be another step towards not only an equitable economy, but an equitable society.

Weaponize Knowledge with Modern Monetary Theory (MMT)

Please help our Real Progressives efforts in spreading and become a monthly donor!

At PayPal
[ Ссылка ]

At Patreon
[ Ссылка ]

Write for Real Progressives
[ Ссылка ]

Visit our website:
[ Ссылка ]

Listen to our podcast:
[ Ссылка ]

Like our pages
Follow us on Facebook:
[ Ссылка ]
Follow us on YouTube:
[ Ссылка ]
Subscribe to Rokfin:
[ Ссылка ]
Follow us on Periscope:
[ Ссылка ]
Follow us on Twitter:
[ Ссылка ]
Follow us on Instagram:
[ Ссылка ]
Follow us on Reddit:
[ Ссылка ]
Follow us on LinkedIn:
[ Ссылка ]

#MMT
#RealProgressives
#LearnMMT
#INSIST
#EachOneTeachOne
#ItsInOurHands
#WeAreTheMedia
#WeAreTheRevolution

свернуть