Written by John Lounsbury
Why are governments finding it difficult to fund the services that are competing for the “public dollar”? Stephanie Kelton argues that the reason is a flawed assumption about money. Instead of running fiscal policy based on an assumed level of income (from taxes), she proposes that the policy should be determined by what the body politic can agree is needed and then fund as much as the economy can produce.
Please share this article – Go to very top of page, right hand side, for social media buttons.
Prof. Kelton argues that what is produced in the economy should not be limited by how much money is available; the amount of money available should be determined by what the economy can produce (and consume). She says that instead of “defining the economy” by “balancing the budget”, governments should be “defining the budget” to “balance the economy”.
Source: YouTube
