People keep asking: “When are we going to do MMT?”
That question is built on a misunderstanding.
Modern monetary theory is not a manifesto, and it’s not a magic “print money” promise. It is an explanation of how the monetary system already works, in the UK and elsewhere. It describes what government spending really is, why taxation does not fund spending, and what “borrowing” really means in a sovereign currency system.
In this video, I explain:
- That the UK government creates the pound.
- Why government spending must come before tax.
- What tax is actually for (inflation control, demand management, and resource shifting).
- Why government bonds are a savings product, not borrowing.
- Why deficits create private sector net financial assets.
- What the real constraints on the economy are.
- Why austerity is always a political choice
MMT doesn’t tell you what to do; it tells you what’s true. And once we understand that truth, we can finally have an honest debate about policy, democracy, and the society we want.