Modern Monetary Theory — Of Course We’ll Suffer Inflation

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“Progressives” maintain that the federal government can spend without limit and not affect the value of the dollar. They have a bunch of lapdog economists who take a “Don’t worry, be happy” approach to the vast expansion of federal spending and debt.

A dissenter is Alex J. Pollock. In this Law & Liberty essay, he argues that there is much more than “a chance” of rising inflation. I particularly enjoyed his swipe at Modern Monetary Theory, which he calls “Modern” Monetary Theory, since governments have been creating money to cover their profligate expenditures for a long, long time.

His essay is loaded with history and common sense.

Let’s remember that the same people who tell us that the feds can spend endlessly without debasing the dollar are the same people who maintain that it can mandate huge wage increases without making any workers unemployable.


George Leef is the the director of editorial content at the James G. Martin Center for Academic Renewal.





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