Conventional economics is built around the idea of opportunity cost. If there is a limited resource a decision has to be made about how best to use it. How is that principle applied when you look at Modern Monetary Theory, when governments can create money without limits until you have reached a point of full employment. There is no need to look at one choice over another. Perhaps you can do both? So, what determines how money is spent? Are those spending decisions left in the hands of politicians? Steve Keen says, to start with, the theory of opportunity cost should be ditched because it only applies at a personal level. He explains why that is, but agrees with Phil that politics is the big stumbling block when it comes to the practical application of MMT.
Related Articles
Victoria Chick, Kate Raworth, Mariana Mazzucato, Steve Keen, and Sally Svenlén – Economics Reformation video
Marking the 500th anniversary of Martin Luther’s challenge to the established church, the New Weather Institute and campaign group Rethinking Economics, with input from a wide range of economists, academics and concerned citizens, are challenging the […]
Macro n Cheese: Jason Hickel – Please Look Up
August 13, 2022
Mathew D. Rose
Climate Crisis, Economics, Environment, Finance, Globalisation, Inequality, Neo-Liberalism in the EU, Solutions, Sustainability, The Commons
0
Near the start of this episode, Jason Hickel raises Noam Chomsky’s position that the urgency of the climate crisis is so dire it will have to be dealt with under capitalism. There isn’t time to […]
Steve Keen – Interview on Keiser Report
“Max quizzes me about the failure of negative interest rates, the promise of a Green New Deal or a Trump infrastructure package, and about Ray Dalio’s failure of capitalism claims. I raised the spectre of […]
Be the first to comment