https://www.themintmagazine.com/a-large-consideration/ Published by Promoting Economic Pluralism Sun, 02 Jan 2022 18:02:32 +0000 hourly 1 https://wordpress.org/?v=6.9.1 https://www.themintmagazine.com/a-large-consideration/#comment-24005 Tue, 08 Dec 2020 10:23:35 +0000 https://themint.kinsta.cloud/?p=26600#comment-24005 Mainstream (neoclassical) economists are always putting their foot in their mouth, by confusing and conflating debt within the private sector with debt in the public sector. But these debts are very different beasts. The reality is that the so-called debt of a government which is a monetary sovereign is not really debt at all, but rather, it is a form of broad state fiat money. And the aggregate of that debt (unlike private sector debt) never needs to be paid off … it can be held in perpetuity. And the government has no difficulty in servicing the interest component of that debt whatsoever. Also, the aggregate of that debt equals the net money supply. And attempts to “pay off” that debt amount to destroying the money supply. Not necessarily a good idea.

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