Why The Government Has Infinite Money
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- Опубликовано: 21 сен 2023
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Why The Government Has Infinite Money - Second Thought
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• The Problem With Taxin...
• The Deficit Myth: The ...
More on MMT & Debt
• Who Really Pays For Ou...
• David Graeber: debt an...
• AskProfWolff: Comment ...
• Modern Monetary Theory...
books.google.com/books?id=Y-m...
Debt ceiling news
nlihc.org/resource/congress-p...
www.reuters.com/world/us/us-s...
www.bbc.com/news/world-us-can...
en.wikipedia.org/wiki/Fiscal_...
Medicare for all saves trillions
www.citizen.org/news/fact-che...
Inflation
economicsfromthetopdown.com/2...
• What Caused Hyperinfla...
• Money "Printing" Does ...
Covid spending
www.nytimes.com/interactive/2...
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Big thanks for the shoutout JT! Happy to have played a role in this. For those who want to learn more about Modern Monetary Theory, these are my best videos on it: ruclips.net/p/PLyytc2-LIrN7kIRyPXghWjeb4MV_DDqBK&si=JclZwUoARQjv2DIr
I am so happy I discovered you.
Fantastic episode. 👍
Would be great if you and your team make an episode on the benefits of Universal Housing Rights aka Universal Housing... 👍
Universal Housing Rights is a real world solution to the housing issues we're facing today. It would solve homelessness, excessive rents and housing costs that prevent economic mobility for millions & millions of full-time working poor & middle class Americans. As well as save us all the wasted tax payer money into useless "solutions" (ie. means-testing etc) that never even put dent into all housing issues... housing aka a roof over your head, which is an inalienable Right.
No need for means testing which doesn't work. Say, if you make $500-$1000/year more than the alloted amount it will deny you but not absolve you. It can also give a sense of dignity back to the less fortunate rather than the way our current systems shames them.
Those who don't need it will most likely not tap into it but sure would feel better knowing it's there if they ever do. It wouldn't effect those who are already homeowners! Plus, Universal would be practically zero cost to administer since there would be no need to waste time and resources to administer useless means testing etc.
We could apply some similar policy as FDR & create jobs at the same time. Instead our bought and paid for politicians in the senate just approved close to $1trillion for the defen$e budget, as they so easily do each year and by "bipartisan" support. Always benefiting their rich donors rather than we the people. 😏
We could end homelessness, obsessively high rents that prevent economic mobility and create jobs and wealth across the entire nation possibly within a single generation. 👍
Great work Tony! This video is excellent
I clicked in this video looking for a comment like this, been following for a while and videos are great,im subbed and expecting, lol
Thank you for assisting JT in this video! It’s incredibly important and helpful that we pool our collective resources to help spread knowledge and awareness to the masses!
It really breaks the brain when you consider that 90% of humanity's problems like starvation, homelessness, and lack of health care are allowed to exist in spite of our ability to easily solve them.
And that people actively fight for those things TO exist because their economic model and view of the world requires 30-40% of people to lose so 0.1% of others can win
Capitalism demands sacrifices. There is enough money to end world hunger like 10 times over but that will never happen in a system that prioritises the benefit of the few over everyone else.
@@ilovestitch not only their economic model, but also their political view. they are anti-society in essence
No amount of money will solve those things other than Health care. Poor people are built into the system
There can't be millionaires without poor people existing
"they are great for humanity but they are terrible for CEOs" this message should be more common in our life
Have you ever considered that there is a reason why it isn't "more common in our life": ...because it's simply not true.
@@sinan720 CEO lover.
@@sinan720bootlicker
@@sinan720 corporate boot licker
@@Fychf Jesus Christ is a Socialist and a Liberal.
I've said it for years. When it comes to economics, people seem to keep forgetting that it's imaginary. All of it. We made the whole system up. And if it isn't serving our needs, all we would need to do to solve it is imagine better.
The hard part is getting everyone to buy into whatever the new scheme is. All fiat currency is, is a government-backed IOU that every person with something to trade is willing to accept because everyone else is also willing to accept that IOU. The government can force all of its subjects to accept fiat currency (says "legal for all debts public and private" right on the paper) but has limited control over the exchange rate.
@@dc4457 Yeah, unfortunately that's always been the case. FINDING solutions to most problems is comparatively straightforward; getting people to ADOPT them, however... 🙄
It is man made but how is it imaginary?? And what better do you think can be done??
@@Arpit0011 The whole premise behind fiat currency is "these little bits of paper and metal have value". The whole concept of economic value is predicated on the concept of property. The very concept of ownership is imaginary, as is anything that follows from that premise. Since property only exists because we say it does, and things only have the value we assign to them, it's easy, if one takes off the shades, to imagine something that served everyone (or at least themselves) better than the current system.
For example, my own economic policy, were I allowed to set one for the nation, would look like this: if the civilization as a whole, or any individual, needs it to live, it can't be privatized.
@@michaelhgravesjr9608 i get it now. Thanks for the explanation. Yesterday I saw a video of "aperture" on money and he explained the same that how money is an illusion.
Capitalism's prime objective is profit. Debt, disaster, homelessness, hunger, illness, disease, sickness, pain, death... capitalists see these profit generating opportunities. It is not profitable to "solve" these issues. Human misery continues because it is profitable.
You get it! You 100% get it. Have you heard about Ubuntu Contributionism and One Small Town model? I'd recommend you check it out. It's nice to know there are viable new system models out there that people can contribute to and build in their own community if there is a will, there is a way.
profit in the short term.
it is why this modern life seems so disgusting to me.
Yep, you got that right. They take advantage of all that...the human misery you just described. The Sackler family certainly did it seems.
It's either capital for the capitalists or nothing for everyone, even though no capital is actually created by capitalists but by everyone else.
The irony...
Watching American politics as a non-American feels like listening to your friend telling a story and realizing it was their fault half way through
Youre saying europe is better
@@trasher84 where did I say I was European???
Edit: thanks initiateit for boosting my comments with your anti-public transit comments lmao
@@trasher84and you just validated his outlook. 😂 jfc
We are NOT "Americans". We are citizens of the United States of America. Proper names should be used. The people who live in the continents of North and South America are Americans.
@@trasher84 As an American who has visited Europe many, MANY times...yep!
A) Govt spending is not funded by taxes, so govt spending does not mean less money in your pockets
B) There is no limit to govt spending. There is a limit on real resources
That’s why the United States 🇺🇸 government wants to preserve financial globalization. Once financial institutions & transnationals lose power and influence around the globe that’ll be their weakest point
Taxes indirectly fund things by controlling inflation
@@Anonymoose66GLiterally unless you're out of people and out of things to do, like you would be at "the end of history", no. The thought that we don't have any further improvements to make to both this country and the world is the kind of shortsighted bullshit that had led to the stagnation of the United States as a whole.
MMT babyee. The real crunch though is that debt eventually must be met with an expanded economy and that expansion is 1:1 correlated with energy. That means more burnt hydrocarbons.
Transition must fund first de-energy measures, all the stuff that can be done to reduce the need for energy. Car free cities, passive building climate control, local building materials (like packed earth) etc. We need to remove from the economy all those things energy is lavished on when we don’t need them.
Taxes do serve a purpose though. If the money is not removed from circulation fast enough, it would go worthless.
It was always strange to me how there could be an abundance of resources that are just locked off because of an arbitrarily assigned number value.
Like, you're building a house and there's a pile of lumber that nobody's using, but because you don't have 30 freedom bucks in your pocket you're not allowed to use any of it, so the lumber continues to sit there and nothing gets built.
It's a lot more depressing when you replace lumber with food. Food that goes bad after a few days despite the starving people outside.
This. At least here in the UK, massive supermarket corporations like Tesco throw away old food at the end of the day instead of donating it or selling it for a lower price so that people don't start getting the cheaper stuff.
It's truly awful the things man does to guarantee profit
A government that must subsidize food production "and" food consumers is evidence of a failed system. This is especially true if political forces at play vilify only one side of that insanity, resulting in both hungry citizens and lowered food production as sacrifice to its economic gods.
1/3rd of all food produced globally goes to waste. That's insane! Pure insanity. And why? Because it's the profit incentive at play. More profitable in certain areas of the world to produce so much food that goes unsold and to waste than to distribute that food evenly or more efficiently to those who need it. Sick. But that's the monetary-market madness at play.
Let's go do something about it. Educate ourselves, share with others, build a new system.
The New Human Rights Movement by Peter Joseph to Moneyless Society to A World Beyond Capitalism to Michael Tellinger and Ubuntu Contributionism - we have resources and solutions, if we look at them, we can start with a single step today and tomorrow and a few years from now things could actually be looking better because we aren't so dependent and enslaved by money, we are more free than ever to think well and live.
On top of there being a bunch of lumber stored away, or production of lumber stopping, because they don't want to flood the market and make it too cheap.
There's only a finite amount of people buying lumber a year. Gotta squeeze them for everything they've got.
Oil is probably a better analog for this honestly
@rakkatytam Oil is the perfect example because it's an inherently global commodity that is directly responsive to supply and unrealized supply just like money and modern credit and debt markets. Fuck, oil might even be a better representation of commoditized wealth than gold is. Other than gold's uses in electronics, which are all modern inventions, the reason we use gold is because it's rare enough to create value and cause it's shiny. Oil, on the other hand, literally powers the world, and having oil or not is really a gatekeeper in exploiting most other resources because of the need for producible energy.
Someone said that it's time to be concerned when you start to see individuals shoplifting groceries rather than big-screen televisions, and i agree. Truth is, inflation will never reach 2% ever again, maybe in the next life, but not this one. Anyone purchasing groceries and gasoline is aware that real inflation is much over 10%; they simply lie about it like cheap blankets. In reality, interest rates would be in the 20s because of how high inflation is. But then despite the severe bear market, I am aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
Very possible! Particularly in this weak market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.
I totally agree, it's been three years and counting, and I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. As a small reward for my consistency, I went on a trip to the Bahamas in the late summer. haha
My husband and i just had this conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
Sure, the advisor that guides me is LOREN LENA WALKER, I got to know her through my wife. It's my wife that has her contact, but you could further investigate her credentials and contact her yourself. She's well-grounded and known, shouldn't be a hassle finding her page, just look up her name.
Just did a copy and paste search of Loren Lena Walker on my browser and her page popped up immediately, thank you for saving me hours of researching.
This is what drives me insane about America... it can afford anything to make the country run smoothly, yet it tells us it can't afford to do so... so often that the majority of us have to live in perpetual debt to it, receiving little benefit for the taxes we pay. No wonder so many of us are so damn cynical, angry and looking for someone to blame it on.
Divide and Conquer, a sad but simple strategy that works so well
"someone"? As if it wasn't a very specific group of people. As if it were a mystery.
@@troywalkertheprogressivean8433 Name the "specific group of people." This has been a problem long before Reagan, dude.
@@whyplaypiano2844 the rich
@@troywalkertheprogressivean8433 that's about as specific as the pacific.
i was called rich when i had $10k in the bank.....
The amount of Epoch Times and PragerU ads I get when watching this channel is hilarious
who doesn't block ads?
Money does NOT really exist. It is a construct of society. It only has the value a society gives it.
Well. Today this value is controlled by markets and their 'invisible hands'. Bourgeoisie.
Someone finally gets it
Obviously
My mama always said she views it as a barter product
@@cupcakesfanficgameslover5792sounds like another way of saying money is a means of exchange.
Creating wealth and financial freedom isn't as tough as many people believe.
Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely...
It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.
I couldn't agree more. Taking charge of your life and putting in the hard work is the path to success. Having a portfolio manager like Mr. Samuel Peter Descovich is a game-changer. Their expertise and guidance can truly transform your financial journey. Making $35,000 in profits each month and saving 70% of that is quite impressive!They save you time and provide valuable insights that lead to impressive profits. Keep up the amazing work, and enjoy the fruits of your labor..
I've shuffled through a few experts in the past, but settled with SAMUEL PETER DESCOVICH. The strategy he use is recession-proof, more specifically profit-oriented , and most likely, you'd find his basic info on the net, he's a renowned advisor.
It’s unfortunate most people don’t have such information, I don’t really blame people who panic cos lack of information can be a big hurdle. I’ve been making more than $65k passively investing with Samuel Peter Descovich, and I don’t have to do much work. It doesn’t matter if the market is crashing, I will always make good profit returns.
I have turned over more than half
MILLION working with SAMUEL PETER DESCOVICH on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.
Howdy, friends! I hope you all enjoy the video, I think this is a super interesting topic. If you'd like to support the work I'm doing here at Second Thought, check out Ground News by visiting ground.news/secondthought. It's completely free, and it's a great way to help your friends and family develop media literacy skills. And if you really want to help, you can snag a 30% discount on the Vantage plan by using my link! Thanks for your support 🙏
Big thanks to 1Dime for helping with the technical aspects of this video! You can check out 1Dime's MMT content here: ruclips.net/video/75udjh6hkOs/видео.html
and yet they still say there's no way to give trans people healthcare options
Where exactly is the "peace dividend"?
If the war in Ukraine has taught us anything, it's taught us that the Generals who told us that "Russia is a powerful match for us and we should fear them" (and give the DoD a Trillion dollars a year), that was bullshit!!
Military spending must be reduced, and the wealthy heavily taxed immediately!
I have one question. Why doesn't the government just print money instead of taxing everyone?
Definitely glad you finally covered this, it's the least understood yet one of the most relevant topics ever.
As a health care professional who has to deal with out.of pocket payments , this video speaks what I have always believed about the economy....
Having worked in healthcare, currently starting my MPH, and planning on continuing to work in healthcare, I have grown to hate the US for-profit healthcare industry. Alongside the big -isms, it is one of the biggest things holding back Americans from being happier and healthier people. Just the concept of PAs is fucking insane to me, especially when they start implementing automated denial of claim systems.
The amount of stuff they purposely keep you from learning in school is alarming. Thank you for educating me man...this was super informative
That's what they want. A dumb public is easily manipulated.
so you are telling me homelessness, healthcare, education, economic inequality, unemployment are problems that government could solve if it wanted to but chooses not to?
Yes
@@alexh9676 how is there not a revolution?
it’s crazy to see how much the production value of these videos has gone up over the years. love ur work JT
Justice Terminator?
Eventhough he really peaked with his video about the eradication of mosquitoes. That was JTs real magnum opus
Gotta thank Capitalism. He’s making a lot of money from Capitalism with every video they produce.
@@markdailey8526that’s literally the point, capitalism creates socialism. That’s what Marxism is.
@@HiDefHDMusic that’s a jaded point. Socialism creates socialism.
"Inflation is caused by having too much money in circulation
Those same guys
"I don't want to pay taxes to remove money from circulation"
The same folks that claim inflation is why everything is so expensive these days then reveal unprecedented record profits for their essential goods like Cal-Maine.
+++++++++++++++++++++++++++++++++++++++
Professor Richard Wolff
Professor Michael Hudson
Professor Steve Keen
The primary driver for Inflation is Corporate greed.
++++++++++++++++++++++++++++++++++++++++
Taxes doesn't really destroy money, it shifts it. Repaying loans decreases the money supply though by decreasing the fractional reserve system.
@@kwakkers68 Capitalism*
Inflation is caused by Capitalist. As JT explained, Profit is the driving cause of inflation bcs it doesn't create anything of value for the economy. It's literally assets worth millions of dollars just sitting there, unlike when the Government does spending for a new project. THink about it with the house market we have: Houses just sitting there to gain value for investors are one of the cause of inflation & responsible for the housing market we have. The reason they DO NOT want government to intervene is bcs it would take their profit off that sector & would reduce $price$ of houses through regulations & social housing programs etc... They want planned scarcity to reduce the amount of houses available & create a monopoly where working people fight for housing at an insane price. We would literally have deflation if we abolished the stock market & had a centralized planned economy.
I find it hilarious when they bring up any issue that is beneficial to the public, people give the "how are you going to pay for it?" line. Bit when it comes to the defense budget, no one in Washington or Corporate media has the balls to give the same question to that. It goes to show where the public are in the totempole of capitalism.
"When it rains it pours, they got money for wars but can't feed the poor" -2pac
I've been paying my taxes in eloquently-crafted poems for years and i love it! I've never been richer, though I've never felt poorer on the page...
You remind me of a friend of mine. He's been paying taxes with poetry for years. He works out every day, reads two books a month and has sex every day. If only I could get him to talk about something other than how much he hates living in prison. 🤣
What’s the poem tax rate & bracket? I need to know
wait, this paying tax in poetry thing was ever possible or is it just a joke ? /gen
"Without the government, there would be no dollars because somebody needs to print them out. [..] And you and me.. we're just, not allowed to do that."
That sounds like a challenge.
You guys always whining about gubmint, but you never question who owns and operates it.
@@72marshflower15WHAT
@@72marshflower15 You sound a bit short on braincells
@@alexjeffrey3981 ~ or that something other than gubmint could possibly be running the show..
@@72marshflower15 who? tell us. your very large brain must have a very original answer
There is no more single destructive idea in American politics than that the government is like a household and the government cutting back/overspending is the same as you meeting or exceeding your own personal budget. This ignorance has starved, deprived, and killed millions.
Very needed video. No one seems to realize that the debt means nothing
Debt infinity is good , no problem
I listen to the deprogram and all you guys' videos while delivering amazon packages and it gets me through the day. Genuinely informative and entertaining stuff my bois
Hell yeah dude and thanks for doing that important work. Some people look down on Amazon delivery drivers but ya"ll are so important and I support your unionization efforts
What a sweet comment. You should check out Michael Hudson who uses MMT and Paul Cockshott too on RUclips
@@SinbathSparrowPaul Cockshott is a legend, it's always great to see more people getting his name out there. I have his book on my desk.
Amazon drivers are regular people just trying to get by, the company they work for/conditions they work in is pretty rough but at the end of the day it's one of those modern conveniences that's doing the good work of killing big box stores off and maybe, eventually, will have a hand in freeing up land for sustainable, affordable housing developments, parks, community gardens etc instead of huge stretches of pavement parking lots and giant super-inefficient warehouses for people to be treated like cattle in. @@TheRepublicOfJohn
I used to work for Amazon, but on the other side. I would help the drivers find the delivery point, answer questions, etc. Y'all work hard out there, respect.
"Stop worrying, we have hospitals to bomb now."... That was priceless.... and sad that so many people may not get your joke.
Reminds me when Obama visited a hospital as he bombed hospitals in the Middle East
Did you know Obama holds the world record for the most kids bombed by a Nobel peace prize winner.
@@JaceDeanLove the united states is notorious for killing civilians in foreign nations or "collateral damage" as they say
It is our money we need to use it for infrastructure and human wellness.
"Why does the state have infinite money?" has the same energy as, "wait, so it's all class struggle?"
Cause it is. ✊🚩
It only has infinite money in theory. In practice it can easily make that money become worthless.
@@tod5404That’s what taxes are for. The purpose of taxes is not to give the government money, the government doesn’t need your money. The purpose of taxes is to delete money from the system to keep money valuable, if you don’t pay taxes, you’ll go to jail, and you need dollars to pay taxes, you can’t just pay in gold or Bitcoin or something, so people always need dollars so they won’t go to jail.
That money only becomes worthless if there isn't enough supply in the economy, which leads to inflation. @@tod5404
Would recommend the book Debt: The First 5,000 Years by David Graeber it explains the history of money/ credit and why the US debt is functionally never going to be fully repaid.
E: I just finished the book, so feel free to ask any questions 😝
Here's the chapter on how violence backs up the US dollar and debt ruclips.net/video/c4FzOyvGabg/видео.htmlsi=yWtOEBOK5C9nLHq9
Yeah, I have an itch on the back of my leg, and I can’t figure out if it’s a bug bite or dry skin.
@@AKguru762It's herpes. You have herpes.
@@AKguru762 If the itching decreases with hydrocortisone, it's a bug bite, but if not just use some lotion to hydrate your skin ✌️
What's a good choice for a healthy breakfast?
I’ve learned learned more about our economy from this one video than I ever did watching Dave Ramsey.
I hate that Dave Ramsey is still relevant. I had to watch them when I was in Christian middle school
My financial literature teacher in my Mormon high-school made us watch his bs
@@Pete_xp I love that "christian" man. Love the way he stated that he did not kick people out of his properties but the market did. Such a "christian" thing to do.
MMT is dialectically opposite to Marxian economics. The two are the true polar opposite of each other. Every other economic theory is some mix or the other of these two theories. MMT holds that the capitalist state can, and should, run deficits. Taxes according to MMT are not a means of reducing money in circulation but reducing inflation. To MMT, money is a creation of the capitalist state. However, as Marx proved, money is, by definition, a commodity. It is the social abstraction of labor embedded in commodities. The commodity that serves as money is gold. Not because gold is something inherently unique or special. Gold just happens to take the role of the universal equivalent (money). This means that capitalist states can't create money. The amount of token currencies they print is bounded by the amount of money produced by industrial capitalists engaging in the production of the money commodity. This reveals that the contradictions of capitalism are rooted in the system of commodity production itself. The only way to eliminate the money commodity would be to end commodity production itself.
@@nateisawesome766 I feel like I understood all of that.....but I didnt....
*cries in brazilian as our minister of finances under lula keeps going "actually we cant spend any money and must rely solely on private investments otherwise the big journalists will call me stupid"*
Hopefully the "compromises" won't feel needed if neofascism loses strength by the next election.
One of the best videos ever on this channel. Or at least one of the most educational, having the highest new information per unit of time ratio.
I'll have to re-watch it a few times to really let it sink in and update how I think about government spending in the long term.
There is a good saying: everything we can do, we can afford.
This video was so good I had to save it!!!
TLDW; Governments are not the same as organizations in private or public sector. They are the highest level of authority in a state/country and as such has unlimited trust in the territory they occupy. This doesn't mean that governments don't have a limit, the only real limit of governments is very real and tangible resources (even human capital).
I love TLDW
That is simply not true. It may feel like unlimited trust in the USA but that is only because of the geopolitical imperialist position of the US Economy as a global Hegemon. The UK attempted to increase the deficit to stimulate growth in september last year and creditors DID lose trust in the UK government and the following crash in the value of both the pound and Government bonds massively increase debt servicing costs for the country. If the plans had gone ahead then the creditors would only buy government bonds denominated in a foreign currency at which point the only options are Austerity or Default.
This is key in the context of student loans. So many people think canceling them means other taxpayers have to pay the bill.
well, someone has to pay the bill. The student owes the bank. If the loan is canceled without payment the bank was forced to pay the bill. If government prints money to pay the bank this money is redistributed to the bank's share owners as profit. So there will be more people with money, but there will be the same amount of stuff to be bought. So someone will not be able to buy as much stuff. This will be the person paying the bill
there is no free lunch
@arnaldo8681 no, the government is the creditor of a federal student loan. Not a bank.
@@h.g.wellington2500 sorry for the mistake, im not from the us. The government lent money directly to the students?
Because of the student loan pause, a lot of the borrowers took advantage of this lack of expense to go out to eat, spend on luxuries, vacations etc. This contributed to the massive inflation over the past three years. The resume of payments will definitely help cool the inflation.
@craigmcpherson1455 false. Inflation was caused by pandemic/war related supply chain issues and corporate profiteering.
Spending money doesn't equate to solving problems. Badly allocated resouces can actually do more harm than good.
Another banger! I really thought that 1dime's video was an eye opener when I first saw it, so it's great that you're extending that coverage!
There was an interesting point in Jacob Soll’s book Free Market. He was talking about the period when Britain was trying to compete with the Dutch for control of the world markets. I can’t remember which economist of the time came up with the concept, but they pointed out that a lack of British currency had caused a rise in debt levels. If the economy is growing, but the currency supply is not, then that growth will be fuelled by debt.
I think this concept goes a long way to explain why both the Liberal economic era (which led to the Great Depression and was a debt deflation spiral) and the Neoliberal economic era are characterized by massive unsustainable debt levels. The entire concept behind them is to hyper charge growth while cutting government spending. In other words, more growth, less currency, which means more debt.
That's why feudalists ("anarcho-capitalists") want to limit the money supply. That's why some of them want Bitcoin a currency. When you can't repay your debt you are going to become their slave.
why would it have to be fuelled by debt?
This video is a masterclass on cherry picking
@@arnaldo8681 Because there literally isn't enough currency floating around to transact the necessary business, so the only way to maintain liquidity is to issue more and more loans. Of course, those loans will get harder and harder to pay back as the population is growing and more business needs to be done, but the currency supply does not grow in proportion.
@@Max0r847 why cant prices go down? Then there would be enough currency floating around
babe wake up new second thought video dropped
Me to my cat 🐈
'skim a little off the top' explain $43 singularly wrapped cough drops or $200 alcohol wipes
FINALLY.
As someone obsessed with Modern Monetary Theory who happens to live in the EU under the euro (a really absurd system almost like a modern gold standard) I dream of the day people will understand this
MMT is dialectically opposite to Marxian economics. The two are the true polar opposite of each other. Every other economic theory is some mix or the other of these two theories. MMT holds that the capitalist state can, and should, run deficits. Taxes according to MMT are not a means of reducing money in circulation but reducing inflation. To MMT, money is a creation of the capitalist state. However, as Marx proved, money is, by definition, a commodity. It is the social abstraction of labor embedded in commodities. The commodity that serves as money is gold. Not because gold is something inherently unique or special. Gold just happens to take the role of the universal equivalent (money). This means that capitalist states can't create money. The amount of token currencies they print is bounded by the amount of money produced by industrial capitalists engaging in the production of the money commodity. This reveals that the contradictions of capitalism are rooted in the system of commodity production itself. The only way to eliminate the money commodity would be to end commodity production itself.
I don't see how it contradicts Marxism. In fact, if our ultimate goal is to eliminate money, MMT makes it easier by demistifying it, by showing that money and value are different, that money just keeps tabs on debt.
Mmt doesn't say money is a creation of capitalist state. Money had existed one way or another since babylonian times.
Even if money is not a commodity, that doesn't mean contradicting the ultimate goals of Marxism.
We need to destroy the profit motive. That said, we will always need ways to distribute real goods and services. The difference is that ideally in a communist society one wouldn't be able to accumulate those systems of distribution to gain power.
Your reply to Nate was hidden by the RUclips algorithm for some reason. It seems like he got his (mis)information about MMT entirely from a dogmatic Trotskyite (I like Trotsky but not most Trots) channel on RUclips (IMT, In Defense of Marxism or some other Trot channel). If you talk to him about The Big Bang he will say that is also somehow diametrically opposed to marxism and is polar opposite of materialist dialectics or some variant of that.
Are you a Bitcoin maxi yet?
as a poli sci student i been thinking this for a while now, hopefully more people learn about this topic, and stop fearmongering about inflation from govt spending on good public policy
YOu can't keep printing money.
it is not fearmongering. Multiple countries have been ruined by spending more than they collect in taxes. It gives more money for more people without increasing the amount of stuff available to buy, so prices have to go up, otherwise stores run out of things to sell. In the us this feedback is harder to notice, because the dollar is the world reserve currency. But it can only keep being the reserve currency if other countries trust the us government not to erode its value via inflation. If they dont they will sell their dollars back, and all the inflation that you didnt have in decades would catch up
@@arnaldo8681 so ditch this idiotic monetary system and switch to a computerised planned economy which maximises output for out given resources
@@KekusMagnus there is no way i would support crazy experiments of this scale unless we can be absolutely sure it wont ruin millions of lives
Who decides what is good policy
Thank you for everything you do! Great videos man!
One of your best videos yet, debunking the lies that we're told about how taxes actually work and how government spending actually works in under 20 minutes is great. Doing it in a way that's digestible and understandable without a pre-established understanding of modern economics and its underpinnings is even better.
He didn't explain how taxes actually worked at all.
He didn't explain why the citizen has to have their money deducted and there by leaving them with less money to buy
their necessities and items of comfort.
Excellent presentation. Thanks for uploading it. I got introduced to MMT in Jan 2019, and spent the best part of the next year trying to find its faults because I thought it was too good to be true. I tried really hard, but couldn't find a single one. I recommend anyone who wants a good overview of MMT to read Stephanie Kelton's book 'The Deficit Myth'. She also spent a fair bit of time trying to disprove the whole concept before writing that book. My wish is that it goes in the order of what Dr Steven Hail of Australia wants. 1) General acceptance of an MMT frame. 2) Federal Job Guarantee. 3) Green New Deal. 4) Hope for the future. Fingers crossed, and all the best.
Please consider doing some videos on Switzerlands direct democracy!!!!!!!!!!!!!!
Switzerland is a half-direct democracy. Out of the 26 regions of Switzerland only 2 have direct democracy.
@@caim9986 1/13th direct democracy
That sounds terrifying.
@@saturationstation1446 They used to, Switzerland in recent years has diversified away from the banking sector and has eradicated their private banking laws thus it's now not the best option to launder money and or store criminally obtained money, The Cayman Islands, Panama and others are superior in that regard. Switzerland I'm sure still stores alot of criminally obtained money just like most major economies.
Switzerland is like the perfect mix between tailoring to the rich and their average citizens, it's probably the best country in the world for the average national, just look at any positive global index, Switzerland is practically always in the top 10. 1st in clean drinking water & air quality, top 8 in education, 1st in discretionary income, 1st in public transportation.
The country is amazing it's just damn expensive 😂.
Do they use sortition?
Medicare for all could be paid for by taxes easily. Most employers pay a huge amount on their employees health insurance. For example, my employer pays around $2250 per month on my health insurance, I only pay like $350. That means that my employer pays about $27,000 on my health insurance every year, while I pay abut $4,200. If we had universal medicare for all, it was estimated that it could be done with no more than $4K per year increase in taxes on most people. Well, if my employer no longer had to pay that $27K per year and I didn't have to pay my $4.2K, even if my employer didn't give my the $27K, I still would make out by about $200. But imagine if employers were required to increase wages by the amount they saved on health insurance benefits, or heck, if the employer was simply taxed at that rate instead. Basically, everything is so flush with cash that it would be easily paid for. In fact, since the insurance companies have a profit margin, but medicare for all would not, the overall cost for healthcare would go significantly down and be way cheaper even if we continued to pay doctors at the current rate and kept the medical industry as is. All while barely affecting the lives of regular people or by most estimates actually giving them more money. The only people who don't want you to see this are the people making money from insurance companies.
Hi there from someone living in Germany with universal healthcare (for the most part tbh). And the costs for healthcare are split evenly between employer and employee (as are most public insurances btw). And what I pay in health insurance per year is ~3.000€, that is automatically cut from my gross income btw. So 4.000$ per year for public healthcare might still be possible but it could also be more than that, yet still way less than with private insurance only. Plus medicine is very much affordable so there's that. Yet, Germany is not a socialist country at all
You nailed it!
germany spends 5700 euro's so basically 6k usd per person.
aka 1.9 trillion.
thats a third of our budget which i personally would argue is worth it but there are a lot who would argue otherwise and i can see the point. and the other problem people have with it is theres times that universal healthcare takes 3+ months to see a doctor (happened to my teachers mom in italy)
@@linkplays2952 I appreciate your point of view and totally agree that it's worth it. And while I can also understand why some people are irritated by the long wait times, the difference is that everyone gets to see a doctor eventually. In the US, if you are poor or don't have insurance, you just don't get to see a doctor at all.
For example, someone I know had back issues for years but didn't have insurance and so never could see a doctor, until one day he lost feeling in his right leg. They rushed him to the emergency room (though not after considering if it was worth the potential cost). He had an MRI and the doctors found a herniated disk. He gets the surgery and come to find out the herniation is several years old, has calcified, and they can't remove it. The neurosurgeon did a laminectomy instead which probably saved him any chance of walking again, but even now he's permanently partially paralyzed. If he had been able to see a doctor sooner, even if he had to wait 3 months from when the initial problem arose, he wouldn't have these permanent problems. Long wait times for non-emergencies seem a small trade compared to the utter destruction either financially or physically for people who aren't fortunate enough to be able to afford insurance and for even some who can.
And besides, it's not like we don't have long wait times too. If you want to see certain specialists for non-emergencies, you frequently have to wait months. So I really doubt that there's that much difference in that regard.
I love that i can find information THIS useful this easily and broken down for non finance person. Sometimes Yotube is a blessing. Great video.
Excellent video.
Greetings from Russia, friend! Thank you for your videos
I want to be a government
Edit: nevermind
I will vote your limbs off
LOL
@@Fychf cant remember asking and I already do
A story in two parts
Enjoyed it!! This is our Copernican Moment. In the 1500s, the fight was between Geocentricism v. Heliocentrism. It amazes me that Galileo with a simple telescope and what's now 10th grade geometry turned the world upside-down. Thank you Warren Mosler and the MMT Scholars for doing this lifechanging heavy lift. You all are amazing!
However and in contrast, our .01% wealth/asset binging junkies are less than awesome. They drive dopamine and adrenaline with their pain chasing and devastation pushing. I notice that we have guardrails to protect the public at large against other bingers and junkies who cross the line on DUIs. Are people who jump out of airplanes "elites"? Are marathon runners "elites"? How about sex addicts who derive BDSM pleasure? Are they "elites"? No, they are not. And neither are the .01% pain chasing, dopamine-adrenaline driving, wealth-assets-power binging junkies. Break out the Methadone for these junkies. Do an intervention. Lock their butts in a detox program. Erect the guardrails to protect the public from their destructive trash.
I hate, hate, HATE when people treat a country like a household budget! If anything is more like a money FACTORY. (if people need an easy to understand metaphor)
Yep
If we add a limit to resources, then the 1% can horde more resources and you have less. It also means there is a call to action within the people's minds to not waste resources, or keep resources so others don't have them. The problem is people that who watch these videos aren't the people who need to hear this stuff.
People should Google how much the top 1% earned during Covid from JUST from 2019-2022 (hell, present day) alone.
This is happening now, this is what's going on within our capitalist societies.
There is already a limit on resources, that limit is determined by the quantity of stuff we have here on Earth. An exponential need for profits is what drains the Earth faster than we need to, we don't need to overproduce, we don't need a lot of things current capitalists require for their desire of infinite profits. If we systemically change society in which we don't need profit incentives or if we don't apply monetary value on things, then there would be no incentive to horde those thing. If people's needs were provided and everyone got what they needed to live and be happy, there would be no incentive to want more.
Build society with scientific truths, provide the best life for everyone the best we can. We will never live under an utopia, no system can be perfect, but with our current knowledge, resources and tools, we can definitely build something vastly better than a system of profit seeking leeches.
Of course political education and all is required to change the perspective of millions or even billions of people, I cannot even begin to chip away at the surface of this kinda discussion in this comment, but I'm just saying that what you're saying is already happening and happens because of the symptoms of the capitalist system. Things would be incomprehensibly different under a different mode of production...
this is why we need politicians with an actual backbone that aren't just propping up capitalism on one side or radically anticonsumerist capitalism on the other
That's always the case. The people with the power never want to make changes to the system that gave them the power. It's worked very well for them, and changing it would reduce their power. So the people with the power to create change always resist change.
@@imnotmike i still held some hope for socialism before bernie went from "the millionaires and the billionaires" to "the billionaires" when he became a millionaire......
I can not describe how glad I am to see the MMT spread throughout the Marxist community. It just goes to show that we have the ability to learn and evolve throughout the centurys, seeing that Marx’s original monetary theory was not quite accurate does not stop us from using his revolutionary insights in connection with more modern findings to create the best of all possible societies or at least something a lot closer than what we have today. Understanding the true nature of money and of the financial system better than the defenders of the oligarchy is what could give socialists the deciding edge in some countries. We can only wonder what could have been possible in former socialist experiments if the authorities had understood the full potential of their monopoly on currency
however many economists still consider MMT highly debateable
how would you synthesize marxism and mmt? to me they seems completely incompatible, and what would it replace in marxism that was innacurate?
@@jason59k55Marx’s analysis of the origin of currency fell into the standard “currency emerged from barter” rationale. Which, to be fair, was what every classical economist of the time was using and much of the anthropological analysis that would undermine that didn’t come for another century and change. But I don’t think it invalidates Marx in that it just makes currency another aspect of the state that the bourgeoisie utilize for their own economic power in bourgeois democracy. It’s not something that really needs to be synthesized because at its core it’s an analysis of accounting, there’s nothing inherent about it that goes for or against the working class.
@@alexgrunde6682 marxism doesnt state that currency came out of barter, what are you talking about?? marxist analysis says money comes out of class society and comnodity production, not barter in of itself
@@knasiotis1 which ones, the mainstream economist who relied on monetarism in the 70s? The ones who's best models before the dsge were based primarily on a model developed to explain planned economies? The ones who's DSGE models had no room for the great recession? The best critiques of MMT come from the heterodox schools who understand it best.
Keep the good work going, comrade!
Let’s just abolish money instead.
We don't need to, we just need hard money, and we now have it, it's called Bitcoin
Learn why it's the hardest money mankind has seen.
Do you really want to have to barter everything?
Bitcoin
@@crazyprayingmantis5596😂😂😂 Clowns
This is why you cannot argue about debt and spending with most people. They don't understand any of it (this includes most members of Congress)
Just studying money and how it works can fry your brain as one if the just complex subjects there is
Amazing video! Thanks!
MMT is simply a lens as to how the monetary system works. It does not favor capitalism, socialism or any other ism. #LearnMMT
I always knew capitalism was fueled by desperation
Right? When you control the food/water/shelter/education/minds of the masses, you control reality. Even if there is no conscious "deep wicked plan" made by the rich (which I doubt), simply having all the money means you can decide what is made and how society changes artificially based on your own desires and insecurities. Hell, simply thinking like this out of curiosity is enough to make most people upset because they cant imagine anything outside this reality that someone's elses imagination built for them. Its sick.
Hah yeah, capitalism: fuelled by fear, sorrow, desperation and Old Spice. :p
In it's nature it's competitive
@@user-gs1lz2pw9v humans are also cooperative. We might choose to lean into our better traits.
The capitalist class keeps us desperate for their benefit. Best system 🙃
You correctly say that banks create money but you left out that this money is different from the money used by the government and the federal reserve. There are two seperated money cycles
Great video!
How so many people remain ignorant with such simple informative podcasts available has me baffled. Great podcast.
Because such people (not their fault if u think from a holistic perspective) can get easily swayed by information that feed on people's ignorance (no "Left" or "Right", just choices that can power the strawmen that could easily feed them).
One of the most helpful explanations of MMT I've come across. The Marxist twist concerning why MMT is not widely recognized, despite its obvious truth, is missing from far too many otherwise accurate descriptions of the science of fiat money. Thank you for at least touching upon the whole picture, both economic and political.
@@cryptofacts4uYes, Venezuela is in hyperinflation because they print a lot of money, not because it overelied in a unique commodity and it's value dropped absurdly in since 2008.
@@cryptofacts4u”If Santa isn’t real then how did he leave me presents and eat the cookies I left out?”
@@cryptofacts4u MMT: you can print money*
* a thousand page report on the scenarios where this is acceptable, where it can fail, limitations, benefits, etc.
economics understander: HYPERINFLATION >:(
y'all mfs the same people who bring up the mud pie argument against the labor value theory like marx doesn't touch on it like ~40 pages into Das Kapital lol
@@cryptofacts4u Like, literally addressed in the video and most introductory economics texts on MMT mention, printing money is not an issue in cases where the availability of resources is not an issue. Weimar Germany was literally several years into the fallout of the end of WWI -- you think Germany had resources? No of fucking course not. So yes, just printing money was dumb at the time (although do note that it did work later on a few years later when the Depression hit Europe :p) because of context. They did the same thing essentially when the economy turned for the worse in the late 20s/early 30s and funneled a lot of money into public works WHEN THEY HAD MORE RESOURCES ACQUISITIONED. Suddenly printing money works.
It's almost like MMT and even fucking Keynesians understand that printing money is a tool in managing a nation's economy but not something you do willy nilly lol.
The US at the moment IS UNDERUSING ITS RESOURCES. Professor Richard Wolff goes into the use and availability of resources that could be used for new industries and infrastructure -- which are violently underused/underfunded. That is one small reason (among many other reasons ofc) the US' inflation rate isn't going as crazy as the others, because when push comes to shove, we actually do have the resources necessary to accompany the money that we print.
@@cryptofacts4uhe briefly talked about it in the video. Maybe pay attention. In short it was lack of production or use of foreign currency or both.
Hooray! Finally! Someone clearly explaining Modern Monetary Theory. And it isn't just a theory: it's based on empirical evidence. When the gov. goes into debt., the economy, and everyone, does better; and when the gov. restricts spending, the economy dips and everyone (except the rich) hurts. The only limit is not money but productive capacity. Great Job!
The Issue is as soon as people stop believing the government will pay off the debt they will not want to hold the government debt. That is what happened in the UK last September with Liz Truss' budget. If she had doubled down and devalued the pound to fund tax cuts the UK would not be able to find creditors willing to lend in the pound. As soon as creditors force a government to borrow in a foreign currency a country will either face massive recession or a sovereign debt crisis.
What i don't understand is why it's called a theory as if it's not 100% this is the way it works. It's not like speculative history or something. It is right here going on right now.
@@noahwig500 it is 100% how it works in the US from the 60/70s to the present. Not in the rest of the world.
Alright, i see@@Jay_Johnson
Stephanie kelton and warren mosler have been my go to for all things MMT
It’s crazy how we can help so many people that struggle with homelessness, hunger, yet the 1% horde it all just for their profit and greed
thats crazy because that is not true. Money is purchasing power. You cant create purchasing power without creating more stuff, you can only redistribute it. If government spends more than it collects in taxes the difference shows up as inflation: every dollar's purchasing power is reduced, to make up the difference
@@arnaldo8681 the video is literally about debunking your flawed simplistic argument, did you watch anything?
@@KekusMagnus yes, i did. It did not debunk anything
@arnaldo8681 I agree. The video did not debunk anything. It sounds to me like Second Thought is about half way through the process of waking up to how money and government really works.
Thats why the video explained a few times that the government CAN "print" as long as this "new money" is used in productive activites, making the real economy grow, so more stuff is in fact created.
we need second thought canada edition 😭 this video is so well done!
And uk 😅
Another amazing video ❤❤❤I appreciate you JT!
My grandpa used to always say. "It doesnt matter what the government or the world around you is doing. Your life will remain mostly unchanged, maybe a little tougher, maybe a little easier. You'll still be bored and have to go to work."
It's okay, I've forgiven myself of all my debts.
Tutorial???? 👀
really important topic
Thanks!
Your point about inflation being caused by asymmetry and not simply a greater sum of money was one if the best explanations of the cause of inflation i've ever heard lol.
Strongly recommend other read David Graeber's "Debt: The First 5000 Years" and Barry Eichengreen / Kris James Mitchener's "In Defense of Public Debt."
🎯 Key Takeaways for quick navigation:
00:00 💰 Government debt ceiling agreement
01:30 🇺🇸 Government spending and election season
04:32 💸 Government debt and currency sovereignty
06:23 💵 Government spending and taxation
08:18 🏦 Private banks and money creation
11:35 🌐 Real economy and resource constraints
14:21 🌍 Government spending without capitalism
Made with HARPA AI
"SHUT UP AND TAKE MY MONEY" in a nutshell
Thank you for this info🤯
One dime's videos are hidden gems🖤
Love them. Love economics🖤
Seeing a bran new JT video on your feed is like waking up to the smell of fresh coffee. It’s just nice
Our entire way of life under Capitalism is about borrowing from our future to pay for our present.
Did you even watch the video?
Edit: OMG🤣 I fell for the bait😅
Try watching the video. There is no borrowing
In terms of social/ecological sustainability, yes. In terms of money, no.
@@RompelstaumpWe are racking up debt in terms of real resources/conditions that will come back to bite us in the ass. But that is not a monetary phenomenon. It's a "real" phenomenon, which of course economists find endlessly inconvenient to acknowledge "real" things
@@Max0r847 no we are not 🤦♂️
Absolutely beautiful work
Great stuff.
Yep. Didn't understand much. Will return at a later date to this video when I've managed to download more brain cells.
Look, English isn't my first language, so a lot of things fly over me when people are speaking fast.
So, what do I do with youtube videos? Change the speed. It is much easier for me to watch things on 0.75 speed, so I do it always.
Either way, the point is to understand what is being said right? So, I'm not ashamed of taking things slow...
I said all these things because you should know that there are people like this, so... support for learning! 🫡
Keep going strong! You've got this! 😎
Informative.
I was thinking as I was watching this "This sounds a lot like 1Dimee's video on this topic!" And then you shouted him out at the end! Great stuff!
Thanks for explaining! Makes a wee bit more sense - this should be taught with our civic classes as we learn and register to vote.
The capitalists don’t want you to understand this
except these ideals have been demonized by our government and in turn, the american society, doubt we’ll ever see much success in that regards, as much as i wish that weren’t the case. americans are just too dumb
No thanks.
@@FychfBro stop spamming under all the replies you dork
@@sinan720LOL so you want to stay ignorant
Hey guess what? Money has no intrinsic worth! :D So yes, the gov'ment does in fact have the money to spend on every possible policy we could ever want i.e. Medicare 4 All, UBI, etc.
Love the video! Great work as always! More people need to hear this kind of stuff. Maybe then the worker class can finally rise up :D
The part we need to control for if we have the government set up M4A, UBI, etc. is price controls to prohibit capitalists from profiteering and hoovering up all that newfound "wealth" the common class would be found with.
And honestly we could probably vastly improve most peoples' lives without M4A and UBI through strict price controls on all goods.
He did say something about finite resources though... an analysis or two about the superimperialism of the US is due upon reaching your point of euphoria.
@@cryptofacts4u
You have used this example in more than one comment so I'm assuming your a troll or haven't read the academic work on MMT. So if you are serious then you can go to the defacto post-keynesian handbook: Marc Lavoie -- Post-Keynesian Economics: New Foundations. He has a chapter on monetary policy which explains how MMT fits into monetary policy.
MMT requires certain conditions to be met, Venezuela does not meet those conditions. The United States does.
@@cryptofacts4u Just say you can't read lmao.
@@cryptofacts4u Also, his argument is "Venezuela does not fit certain requirements as stated in -insert evidence here- which is unlike the USA, which does meet those requirements."
Thank you
I want a rated “R” animated series that is the opposite of Prager U videos for kids that depicts the actual brutality they white wash
As an Amer'ican, I hate my country doing this. Your channel has changed my life on how I see politics in this country, including it's made me become a socialist thank u for this awesome vid man!
Socialism has worked out for venezuela right?
@@alexuvarov7441 it has, but keep in mind socialism isn't perfect, yet capita'lism is failing us and it needs to go.
@@alexuvarov7441 Plus, that country hasn't done everything right. Let's be honest, but they have done some great stuff.
@@andrewreynolds912 Bro, you can't fund socialism without capitalism. Where will you get the funding for your socialist utopia? "capitalism has to go." Why don't you go to North Korea, they don't have capitalism there. Have fun at your work camp.
@@alexuvarov7441 dude, it's complex. Capitalism is not gonna go down without a fight. Dude, we are in late stage capitalism. You bet af that we're lucky to wanna see what's gonna happen to capitalism this century.
Wow.. MMT & endogenous theory of money.. I love economics🖤
Great video
As per usual it seems that we the people will be forced into even lower standards of living while the exploiting class continues its wanton carnage
This is the first video about the Modern Monetary Theory that mentions MMT only towards the end. Just yesterday I was searching for a video about MMT on your channel and there it is. I hope you're going to make more videos about the MMT, so more socialists will know about it, to use it for debunking conservatives and implement progressive economic policies. Maybe even critizising it from a socialist perspective because the conservatives's critique on the MMT is just imbecile. They don't even (want to) understand it like they don't (want to) understand most things.
It’s basically Keynes
@@Ocinneade345no
@@Ocinneade345 Keynes + Chartalism (and some other stuff like the job guarantee)
@@Ocinneade345not really. It goes beyond Keynes
@@TiberionMarivallis MMT does not work. I don't know what you're talking about.
Incredible job explaining a complicated topic.