This is why the Federal government is the only institution capable of increasing the net financial assets of the private sector.

A $1000 Treasury bill is the buyer’s asset and the taxpayer’s liability. How do you reckon that nets to a positive?

If your point is that the Social Security check increases the retiree’s spending capacity relative to the other bidder and thereby diverts the golf clubs to different hands, then I agree.

The concern is not just the hands are different, but that the winner was probably a good bit richer than the loser to begin with. Most wealth is held by the old, and Social Security isn't means tested.

And does the country really need more golf clubs? Forcing consumer demand away from work boots and cribs and into golf clubs and cruises distorts production away from what people are prepared to work to get toward what the politically connected would prefer. It means more golf club merchants and cruise ship waiters, fewer resources at the disposal of the young, poorer workers. In what sense is that a social good?

The MMT solution to idle labor is the Federal Jobs Guarantee (FJG).

That’s obviously a good bit more than a monetary policy, it’s government running the labor market.

Idle resources and labor are indeed idle for a reason, and that is because the financial assets necessary to employ them either do not exist or are not held by those in a position to do so.

Yes, but more fundamentally the *physical* resources aren’t available. The baker bakes in exchange for money, then prioritizes the things she wants to buy. The VCR repairman doesn’t make the cut. He’s unemployed because given the choice of baking a few more loaves to buy his services, the baker opts for more leisure.

Helicoptering cash into her pocket might persuade her to hire the VCR guy, but no one has baked that extra bread to support him. It must be redirected from the table of someone productive. Meanwhile lying to the VCR guy about the value of his services delays him finding something useful to do, and worse, draws more young people into careers in VCR repair. Again, where’s the social good?

government is never subject to a financial spending constraint since it is the sole and sovereign issuer of the currency

Sure, if you’re willing to ride roughshod over people’s time, productivity and standards of living, you’re free of “constraints.” And given that, obviously inflation is no constraint either. Who cares what it costs the masses to support themselves?

Tech guy trapped in the data mines of San Francisco. Follow me at

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