Your current web browser is outdated. For best viewing experience, please consider upgrading to the latest version.

Contact

Send a question or comment using the form below. This message may be routed through support staff.

Email Article

ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
search DONATE
Close Nav

$1 Trillion? Why Not $5 Trillion! For Progressives, the Sky Is No Longer the Limit on Spending

back to top
commentary

$1 Trillion? Why Not $5 Trillion! For Progressives, the Sky Is No Longer the Limit on Spending

New York Post March 30, 2021
EconomicsBudget

$200 billion, $2.2 trillion, $900 billion, $1.9 trillion. Over a year, Congress has passed $5.2 trillion in extraordinary spending — and President Biden wants another $3-4 trillion, split between infrastructure and social spending.

When a “normal” federal budget, pre-COVID, was $4.4 trillion, and with borrowing, not taxes, funding nearly half of federal spending, it’s not crazy to ask how much is too much, before we risk huge inflation.

“Modern monetary theory” is a trendy philosophy — AOC is a fan — that holds that the government can spend as much money as it wants. Drinks all around! Even if bondholders don’t feel like lending to us to make up the difference in spending and revenues, the Federal Reserve can create new money through “keystrokes,” argues the first-ever MMT textbook, published in 2019.

Continue reading the entire piece here at the New York Post

______________________

Nicole Gelinas is a senior fellow at the Manhattan Institute and contributing editor at City Journal. Follow her on Twitter here.

Photo by Doug Mills-Pool/Getty Images

Saved!
Close