Stephen Yearwood
2 min readMar 15, 2024

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It can be argued that through MMT (Modern Monetary Theory) that concept can apply to the economy as a whole.

Currently, currency is created to fund the central government and taxes serving as a mechanism to withdraw money from the economy. In that description of how the funding of the central government actually transpires, the issuance of 'debt' (bills, notes, and bonds) serves as a means of monetizing that funding.

Both 'debt' and taxes are crude, archaic devices.

A possibility exists to bring that process into the 21st century. Money would be created as needed, without bothering with 'debt', to fund all government (from now on at the current per capita rate of total government spending). Separately, money would be created as needed to fund a guaranteed minimum income--in an amount someone could actually live on. Any (adult) citizen could become eligible for it. (Any nation could adopt this paradigm.) 'Excess' money would be collected, but people and business would retain plentiful pools of money, based on income (with a multiple of that amount in assets), and no money would be collected from any person or business before it could be used for purchases/investment.

The result would be no unemployment or poverty--at any level of total output--and no taxes (at least at the start, though they would still be a possibility for further funding). Gone for good would be the political imperative that now exists to maximize total output in order to maximize employment, total income, and the collection of taxes (at whatever rates exist). That would be the biggest single boon to sustainability that we could make.

if curious: "Two Possibilities within MMT" (here in Medium, but not behind the paywall)

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Stephen Yearwood
Stephen Yearwood

Written by Stephen Yearwood

M.A. in political economy (money/distributive justice) "Please don't confront me with my failures/ I'm aware of them" from "These Days," as sung by Gregg Allman

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