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caity_c's review against another edition
2.0
I found this book very boring to read. The writing was excruciating. I found this book to regurgitate a lot of topics. This book could of covered all of it’s topics in less than 100 pages. However, the message was important. Kelton is right in arguing the perspective we take on the deficit needs to change and the government should not look at their budget like a household would.
joeynedland's review
5.0
Phenomenal book that forces one to reconsider the lens through which our government deficit and debt is discussed. Kelton's core point is that Modern Monetary Theory (MMT) supports government spending without respect to the deficit, *so long as inflationary risks are not imminent*. Government officials traditionally use the debt as a cudgel, linking tax inflows as the only debits that support government spending to improve the lives of its citizenry. The thesis that she hammers on repeatedly is that linking taxation and government spending this way gets it all wrong; the true purpose of taxes is to impose work on citizens (thereby ensuring a consistent supply of real resources in the economy), and to remove currency from circulation to ease inflationary pressures that government spending creates.
So much of the criticism that I see of MMT seems to claim that MMT doesn't properly account for inflationary risk. It does! Her whole point, well articulated in this book, is that the United States isn't feasibly at a point where inflation poses a tremendous risk. In a future world, where the government continues spending and invests in things like infrastructure and green tech, inflationary risk will require curbed spending and increased taxes-- not to directly 'pay for' the spending, but to ensures that real dollars in circulation don't bring inflation to fruition.
Hard to think of a book on economics that's this compelling. Highly recommend.
So much of the criticism that I see of MMT seems to claim that MMT doesn't properly account for inflationary risk. It does! Her whole point, well articulated in this book, is that the United States isn't feasibly at a point where inflation poses a tremendous risk. In a future world, where the government continues spending and invests in things like infrastructure and green tech, inflationary risk will require curbed spending and increased taxes-- not to directly 'pay for' the spending, but to ensures that real dollars in circulation don't bring inflation to fruition.
Hard to think of a book on economics that's this compelling. Highly recommend.
hank's review
5.0
I loved this book! I didn't understand it but I loved how Kelton presented information completely foreign to my brain. I will need to read this again (or 10 times) to fully understand what she is getting at but the tldr summary is that deficits are not bad, inflation is, as long as you (Sovereign country) control your own money.
Kelton walks through 5 myths associated with national defecits, all of which I pretty much believed and were a core part of how I viewed monetary policy. My brain hit a wall and I have slowly been trying to piece it back together based on this new information. Should I do an about face after being convinced by a single source? Certainly not but Kelton is convincing and I will look for more.
I am as liberal as they come but I was a bit put off by the last 25% where the arguments took a fairly leftward bent. I agree with all of them but I think it detracted from the very objective first 3/4 of the book. 4.5 stars rounded up because I do lean left and absolutely support her final conclusions.
Very happy I read this, need more.
Kelton walks through 5 myths associated with national defecits, all of which I pretty much believed and were a core part of how I viewed monetary policy. My brain hit a wall and I have slowly been trying to piece it back together based on this new information. Should I do an about face after being convinced by a single source? Certainly not but Kelton is convincing and I will look for more.
I am as liberal as they come but I was a bit put off by the last 25% where the arguments took a fairly leftward bent. I agree with all of them but I think it detracted from the very objective first 3/4 of the book. 4.5 stars rounded up because I do lean left and absolutely support her final conclusions.
Very happy I read this, need more.
mabeaver84's review
4.0
According to Modern Monetary Theory (MMT), we should not fear fiscal budget deficits because the federal government is the sole issuer of currency, and it can spend money into existence as long as it doesn’t cause the rate of inflation to rise.
eznark's review
2.0
A pop sci approach written by a policy wonk is almost never well done. Kelton struggled to find the right tone bouncing between superficial economic analysis and homespun common sense-isms meant to downplay the sheer scale and scope of changes her proposals would require.
The one thing I was hoping for in this book was some moral justification for taxing income in a system that says taxes are irrelevant and unnecessary when discussing federal spending but not only does she fail, she doesn't even try. "taxes are meant to reduce your spending power" is straightforward and also just theft.
Probably the most damning criticism is that despite the brevity of the book, the author repeats herself nearly every page.
I look forward to a more serious discussion of MMT from someone with the time and inclination to devote to it.
The one thing I was hoping for in this book was some moral justification for taxing income in a system that says taxes are irrelevant and unnecessary when discussing federal spending but not only does she fail, she doesn't even try. "taxes are meant to reduce your spending power" is straightforward and also just theft.
Probably the most damning criticism is that despite the brevity of the book, the author repeats herself nearly every page.
I look forward to a more serious discussion of MMT from someone with the time and inclination to devote to it.
aaronboyes19's review
5.0
This book, outlining Modern Monetary Theory (MMT), just makes so much sense. We are locked in a financial system that rewards the rich and demonizes the government simply because that’s what we’ve done since the 1980s. Our current structure is merely the most recent, and it ensures that poor people remain poor. We need to see the government as an institution that HELPS people, not one that takes “our money”.
dfranken's review
5.0
I enjoyed reading this book. As an outsider who knew little about MMT before, I think this was a good primer for informing the general reader about what MMT means. The book repeats the same concepts many times, but I think that is to hammer the point home. I don't necessarily agree with all of the conclusions made. Still, I thought Kelton did a good job explaining MMT's ideas, the main point being: the US Government is not limited by the deficit but real resources. From this single idea, many other potential policies are derived. Kelton also talks about several myths associated with government fiscal and monetary policy. This is a book I'd like to read again at some point.
tkkemo's review
5.0
Great book, everyone should read it. Basic understanding of fiat currency and how government debt works is pretty fundamental in how the economy can function better for everyone.