Famous rapper, actor and filmmaker Ice Cube caught on to a recent trend in economic policy and proclaimed on Twitter that in the US, money grows on trees.
This idea has been popularized by economist and professor Stephanie Kelton, a major proponent of Modern Monetary Theory or “MMT.”
Advocates of MMT typically take on two slightly different policy paths, both worth describing.
One part of the MMT crowd simply states that deficits have no impact on the economy, and any inflation problem can be solved by raising taxes. In short, we keep the same monetary framework, issuing new debt to cover budget deficits, and we can more or less ignore the interest expense or the scary debt numbers that result. The goal of the politician is to maximize employment, investment, and consumption without causing inflation.
Ice Cube Joins The MMT Crowd:
The second faction of the MMT crowd