On Wednesday, January 30, 2013, the Monetary Literacy Group will continue its discussion on Modern Monetary Theory (MMT). We will be reviewing and discussing the second half of Warren Mosler's book, the 7 deadly innocent frauds.
Deadly Innocent Fraud # 4: Social Security is Broken. Fact: Federal Government Checks Don't Bounce.
Deadly Innocent Fraud # 5: The trade deficit is an unsustainable imbalance that takes away jobs and output . Fact: Imports are real benefits and exports are real costs. Trade deficits directly improve our standard of living. Jobs are lost because taxes are too high for a given level of government spending, not because of imports.
Deadly Innocent Fraud # 6: We need savings to provide the funds for investment. Fact: Investment adds to savings.
Deadly Innocent Fraud # 7: It's a bad thing that higher deficits today mean higher taxes tomorrow. Fact: I agree - the innocent fraud is that it's a bad thing, when in fact it's a good thing!