Part 4/10:
The discussion then shifted towards Modern Monetary Theory (MMT), which posits that the government does not need to rely solely on taxation to fund its spending. While Green acknowledges that MMT provides an accurate description of the current financial system, he also stresses that this does not come without consequences. He points out that excessive government spending—particularly during crises such as the COVID-19 pandemic—could lead to inflation, regressive taxation, and long-term economic instability.