Economic myths that persist

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Economic myths that persist

Post by Post Gold Standard on Wed Oct 26, 2011 9:25 pm

#5 and #8 and many other parts of the declaration make false assumptions that the US government is somehow revenue constrained (ie. it must tax or borrow before it can spend). The US federal government is the issuer of the USD, not a user like you, me, a state, a city, and a business.

Here are 10 economics myths that persist and cause us to continue to do and ask for the wrong policies.
Myth #1 -The U.S. government needs to be more like a household and save money before it can spend.

Myth #2 – The U.S. government is “running out of money”.

Myth #3 – The USA is becoming the next Greece! We are bankrupt!

Myth #4 – We are Zimbabwe or the Weimar Republic and hyperinflation is coming.

Myth #5 – China will stop buying our debt and crash the bond market.

Myth # 6 – Just wait until those bond vigilantes make yields rise and bankrupt America!

Myth # 7 – Interest on the national debt is unsustainable and will inevitably bankrupt America.

Myth #8 – We are the reserve currency and if we lose that status the dollar will crash.

Myth #9 – When the bond auctions start failing the U.S. government will crash and burn.

Myth #10 – MMT says that deficits “don’t matter” and that the U.S. government can just spend and spend and spend.

Resources:
Pragmatic Capitalist - Myths: http://pragcap.com/10-economic-myths-that-persist
Pragmatic Capitalist - Understanding the Modern Monetary System: http://pragcap.com/resources/understanding-modern-monetary-system
University of Missouri Kansas City Economics Dept.: http://neweconomicperspectives.blogspot.com/
Monetary Sovereignty: http://rodgermmitchell.wordpress.com/
Father of MMT Warren Mosler: http://moslereconomics.com/

You must first fully understand a system before you can prescribe change of that system.

Post Gold Standard

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Join date: 2011-10-21
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Re: Economic myths that persist

Post by Guest on Wed Oct 26, 2011 10:25 pm

Post Gold Standard,
Thank you for being conscientious and listing your sources/resources! There are many economic debates going on on this site and for someone like me has focused study on other aspects of history and politics, it can be a little overwhelming. I like having an idea where people's "facts" come from, as I often feel like I've walked into the middle of a conversation!
peace,
Johanna

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