The only way to increase economic growth is greater productivity (more goods and services for less inputs). I don’t see how MMT achieves this.

MMT recognizes this, but also states that most economies function far below optimum productivity out of fear of inflation. Producers will increase output up to the potential maximum before raising prices in any system that allows competition. This is why it stresses the importance of the currency issuer also being the employer of last resort with a job guarantee funded with the creation of fiat money to act as the automatic stabilizer in the economy instead of relying on monetary policy and involuntary unemployment.

The use of monetary policy to act as a damper on demand has proven less than ideal and mostly ineffective with private sector credit becoming the flywheel for economic activity. This works in a steady state GDP growth that gives the illusion of retiring private debt by rolling it over into that growth. However, at the first hiccup in the business cycle, the bills come due with no means to pay them for a majority of the working middle class. Credit is destroyed and recovery takes much longer as workers must struggle against tightened credit to maintain their lifestyles.

Each cycle will chip away at the lower edge of the middle class and those demographics who are traditionally first fired and last hired will take the brunt of the cruelty of such a system, creating much higher social costs for health care, incarceration, and safety nets mostly managed in a hodgepodge of alphabet agencies that only entice envy and anger among the general population that is under the illusion that “their” tax dollars are paying the bills for others as econ ignorant and opportunistic politicians feed on the illusion and use it to entrench themselves in lifelong careers as detractors of the government’s ability to manage anything effectively.