What if the debt clock hanging over Times Square stated, accurately, the same numbers but labeled them as "national savings"? Would that alter the conversation? Because it is far more accurate as a measure of our collective productivity than anything resembling debt. It is simply an accumulation of spending in deficit of tax collections, unless you can explain how one can borrow what doesn't yet exist as well as recycle dollars into federal spending after they have reduced the debt.
If those who insist some progress be made against this "debt" are serious they should be the first to turn over any net financial assets they own. Eventually, paying down this number will require "ALL" such assets, leaving us with only bank debt in default. It should not be lost any such advocates of balanced and surplus budgets that every such attempt has resulted in deep recessions and depressions for even getting close.
"This week, as the debt ceiling bears down upon us once more (Congress must raise or suspend the debt ceiling by July 31st), we ask, how much is accounting, and how much is genuine fear? Can we actually sustain the largest national debt in history without crushing taxes, a bare bones future, runaway inflation, or default?"
This is nothing more than political theater when the misunderstanding of federal finance can be plied to maximum effect against the working class. Those who make their money from money have none of the delusions they wish to reinforce among voters. It always comes down to restricting any public purpose spending while anything benefiting the wealthy is considered to be sacred as "job creation".
"MMTers assume that taxes can be abruptly lowered and raised, when in reality it takes years, if not decades, for any serious tax reform to take root."
The best economists, including many at the Fed, can't accurately define the causes of inflation and generally accept it as something that goes bump in the night and "might" happen if we cross some mythical number limit. At least MMT offers a solid concept if what it is and how it happens. Unless the resource lacking is so intrincic to our productivity that it bridges all divides, as oil was in the '70s, inflation will not occur "across the board".
Those with excessive fears of inflation don't display the faith they profess in the "free market". MMT begins with the concept of full employment as a right to any who desire it and recognizes that "ANY" misery that can be mitigated with dollars is entirely a political decision, not economics. That places the burden where the founders meant it to be, on Congress as monopoly holders of the purse strings.
