Why Conservatives don't like MMT
Conservatives dislike money printing because its chaotic ('magic pudding') and because the poor can benefit more easily.
I think that an attraction of the Surplus view (that is, non-MMT) (Modern Monetary Theory) is that it gives the illusion of control. If we budget it, then we can control it.
Very similar to the difference between a Carbon Tax and Carbon Trading. The former has price per tonne emitted, the latter adjusts licenses to emit carbon based on the total allowed.
A Carbon Tax is similar to MMT as both assume that the economy will behave somewhat unpredictably, and the government has to adjust accordingly.
Both comparison both Carbon Trading and the Surplus view both assume that numbers in a budget ARE what reality will conform to.
Its no surprise that conservatives like the Surplus perspective because they value certainty over giving people agency. This is both according to my research, and personality research more broadly.
The other reason that conservatives prefer the Surplus perspective is it provides a reason to not help the less fortunate. This is instinctively sensible to someone who feels they live in a hierarchy because one only helps those who can return the favour to an equivalent value. This is called direct reciprocity, as opposed to indirect reciprocity.
I examine this and further differences between hierarchical and egalitarian perceptions in greater detail in my upcoming publication.
Social Psychology and Operations Researcher
2 年I agree with some of Satyajit Das' critique of MMT (and have said as much to MMT proponents). 1: a Jobs Guarantee is poorly described. 2: it would lead to centralised control and corruption. 3: it's similar to Soviet systems. 4: meaningless JG jobs are likely to be detrimental to well-being. I don't agree that. 1: taxing properly is as good as printing money (although it's important). Money is like oil, and the economy needs plentiful lubrication. Removing too much is damaging, especially as the rich will always find novel ways to hoard it (and a tax system requires political will to constantly be closing loopholes) so money printing provides a constant new supply, ideally directed to the poor first. 2: MMT is a political not an economic theory. It's an economic theory. However the JG as designed is far more political than economic. 3: The exchange rate will suffer if too much money is printed. No, the biggest threat to an exchange rate is insufficient money (oil) in the system. As ever financial crisis ever has shown. I also agree with Das' critique of a UBI. 1. It's too expensive. I have developed a JG-like system via Collaboration Vouchers which deals with all these problems. https://lnkd.in/g-KhAhw