The next year will be extremely difficult for everyone, as the entire country will live in a state of anxiety until the virus is contained and a vaccine is developed. The problem with the current economic system is that it is controlled by and for the rich, and it always has been. These include the notion that the national deficit is a crisis, and that social security and Medicare are on the verge of going broke.

The author will address six common myths about the US fiscal situation. How can we pay for it Stephanie Kelton points out how misguided those questions really are by using the bold ideas of modern monetary theory (MMT), a.

In reality, fiscal deficits actually increase private savings, and crowd-in private investment. The fourth myth is that deficits are bad for the economy because they crowd out private investment and undermine long-term growth. The first six chapters of the book dispel the myths about the US deficit and how it should be dealt with. 5 trillion was quickly whittled down to $787 billion, which was passed by Congress. President Obama initially responded to the crisis by proposing a $1. The government has the ability to print money, and spend it, which is what FDR did during the Great Depression, and what Obama did following the financial crisis of 2008. Kelton is a gifted writer and teacher and I confidently predict that The Deficit Myth, brilliantly written and argued, will become the defining book on. While there are no financial constraints on the federal budget, there are real constraints in place, such as inflationary pressures and available productive resources. In the prevailing era of too-low inflation, the macro policy implication should be obvious: We the people presently have far more fiscal space than the deficit scold, pay-for crowd preaches.

The author has a difficult time believing that the solution to all of our country’s problems is to simply spend more money. In many cases, it is the government itself that is causing the problem. The government is not always the cause of the country’s fiscal problems. Insights from Chapter 9 Insights from Chapter 1 Insights on Stephanie Kelton's The Deficit Myth

The Deficit Myth by Stephanie Kelton