Former Deputy Secretary of the U.S. Treasury Endorses MMT

Reblogged from New Economic Perspectives:

Three months ago, Frank Newman sent me a book entitled Freedom From National Debt.  I finally got around to reading it — all 89 pages.  It’s a little book, packed with evidence that America is being held back by incorrect assumptions and misguided fears about the national debt and government finance in general. Here’s the takeaway:

America has convinced itself that it can no longer afford many of the productive things that it has done so well over its history. Infrastructure repair, jobs programs, military modernization, tax reduction…have all been stifled because of this fear.

Like the proponents of MMT, Mr. Newman is frustrated by the pervasiveness of these falsehoods and their devastating effects on our social and economic well-being.  He sees what we see, the potential for a vastly more prosperous, more stable, and more secure America that is being kept out of reach through the adoption of economic policies that were designed for a country whose currency was still tied to gold.

He draws many of the same “unconventional conclusions” reached by proponents of MMT:

Read more… 134 more words

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3 responses to “Former Deputy Secretary of the U.S. Treasury Endorses MMT

  1. Newman cites several well-known MMT theorists in a footnote. He is sympathetic with their positions:
    “An analogy between Treasuries and a government (Fed) bank has been used by Warren Mosler, in “Seven Deadly Innocent Frauds of Economic Policy.” That book and Six Myths take different approaches to reach some similar conclusions. This author recommends Mr. Mosler’s book, as well as various writings by academic proponents of “Modern Monetary Theory” or “Neo-Chartalism,” including L. Randall Wray (The Levy Economics Institute of Bard College,), James K. Galbraith (University of Texas), Scott Fullwiler (Wartburg College), and Bill Mitchell (University of Newcastle, New South Wales, Australia).”

    Newman, Frank N. (2013-04-22). Freedom from National Debt (p. 14). Two Harbors Press. Kindle Edition.

  2. Pingback: Former Deputy Secretary of the U.S. Treasury E...

  3. That is still a pretty bloody minimal reference to MMT etc by Newman.

    It’s another example of people leaving positions of power and then stating what goes on a format that only a limited number will read (very few people read a whole book on monetary system) and without full credit.

    And where are they when Obama comes out with classic ‘gov has run out of money’ nonsense?

    Senexx: I’d like to contact you by email with a proposal related to Randall Wray.

    Can you reach me via the email info supplied in the comment entry?

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