•  neptune   ( @neptune@dmv.social ) 
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    69 months ago

    Interesting.

    The idea of the government telling banks to change people’s bank values is a bad example, but I think the core is accurate. The government has a role to play in the economy and we have only decided arbitrarily that taxes will fund coffers that get spent “responsibly”. But there is really no necessary corelation here. We have just sort of arrived here, at this metaphor, to make sure the government doesn’t do something stupid like buy everyone a puppy.

    For those who believe in markets, keeping the government largely operating within markets (taxes, expenditures, deficits, etc) is a useful proxy. But when the markets are so far distorted and the lives of poor and working people are at stake? Yeah it’s clear something has to change.

    •  xapr   ( @xapr@lemmy.sdf.org ) 
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      69 months ago

      Yes, the example is a pretty poor one, but the idea has been around for a while. I’m surprised that the author didn’t even mention it, since it’s become more mainstream over the last few years, with books and academic papers written about it, and some economists adopting the idea. It’s called Modern Monetary Theory (i.e., “MMT”).