A good place to start is with a simple description that you can carry in your pocket: MMT proposes that a country with its own currency, such as the U.S., doesn’t have to worry about accumulating too much debt because it can always print more money to pay interest. So the only constraint on spending is inflation, which can break out if the public and private sectors spend too much at the same time.
In my opinion, this is not how current economy works. Countries are not closed economies, but highly dependent of international trade. Countries that accumulate too much debt not only generates inflation, but also distrust. Currency value sinks and people use other payments methods.
One of the MMT rules is that only the country can issue currency, and that is false. This theory underestimates the capacity of private banks to issue currency and manipulate interest rates. And geopolitcs is another factor that must be considered.
If a country stops taxation and issue more debt, all citizens and companies will abandon that currency and use other currency to save money and maka payments.
From what I understood The MMT theory doesnt eliminate taxes. It gives another use to it: instead of being the way to fund government expenses it is used to reduce the circulating money and reduce the inflation.
It´s doing the same but with different mechanics.
Another idea of the MMT is reduce taxes to decrease unemployment rates. For companies, salaries are just another cost, and they always try to reduce them to increase income. Reducing taxes won´t change that, so it won´t affect unemployment rates.
I really like to see how responsive you are @ropaga :)
Thank you for dropping by @phgnomo and your comment.
I just visited your profile and I've noticed that we're sharing similar passion towards blockchain. Cool :) Followed you already,
Yours,
Piotr
Thank you for your amazing comment @ropaga
I seriously wonder how MMT would deal with inflation (losing fiat currency value). After all inflation is nothing but 'hidden tax', that can destroy economy and businesses. Just like tsunami would.
Also Im curious how countries following MMT monetary system would deal financially with those who stick to traditional/current ways. Something would surely have to change.
Yours, Piotr
Hi again @ropaga
Can I ask you for little favour? I joined contest called "Community of the week" with project I manage and I would be grateful if you could RESTEEM it and help me get some exposure and drop some encouraging comment :)
Link to my post: on steemit or on steempeak
Thanks :)
Yours, Piotr