Hello and welcome to Brokonomics. Now, in this episode, I have been pestered repeatedly by the audience to cover MMT.

Not something I was wildly enthusiastic about because I tend to like to talk about things that I like.

And MMT is not on that list. But nevertheless, people wanted to hear about it so fine we will we

will dig into that because I'm not a proponent of it I did struggle for a while to

think okay how am I going to cover this one and I have I have reached out to an

individual who has given me a bit of back and forth on this one, which we're

getting to later in this episode. So there'll be some pushback on my views, which will hopefully

be helpful. Now, let's start off with a little summary of what MMT is in a nutshell. So it's

basically, MMT is modern monetary theory. So it's basically, MMT is modern monetary theory and its essential argument

is that a sovereign government that issues its own fiat currency, such as the US or the UK, can never

run out of money. And it doesn't need taxes, it doesn't need borrowing to fund spending. Instead, it can just create the magic money. And it doesn't need taxes, it doesn't need borrowing to fund spending. Instead,

it can just create the magic money out of thin air to fund, you know, public programs with

inflation being the main constraint as to where you would hold back. So I think in that little

summary kind of gives

why I'm not attracted to this line of thinking. You see, I like the schools of economic

thinking that are logically consistent at any scale, you know, for the man on the desert

island or space age economy. Now, my thinking is based around increasing the levels of productivity and

innovation, which holds true if you're on that desert island or if you're colonizing Jupiter or

whatever it is. With MMT, the argument is, well, you know, you can just get yourself out of any

bothered just by printing money out of thin air, it doesn't scale logically

inconsistency consistently at every level. It doesn't work for the man on the desert island.

If printing money was the solution to your problems, well, you know, in that case, why not simply

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