 |
Article published by Mythfighter.com.
|
|
| |
Reviewer Comment:
Dr. Mitchell takes Modern Monetary Theory (MM) to an extreme. He opens his
article with data from Michael Sauer and Doblas McIntyre's study "The 13
Worst Recessions, Depressions, and Panics in American History". He
presents a list in which he chronologically compares the dates of these
depressions with data on the Federal Debt to show (claim) that the reduction in
the debt caused the depressions. From his comparison, he states: "It's
pretry clear isn't it. The common denominator among all U.S. depressions is
reduced federal deficit spending (reduced debt). A growing economy requires a
growing supply of money, and federal deficit spending provides that
money."
|
|
| |
The author also provides a graphical
depictation of the growth of Federal Debt over time 1974- 2015 in which he
shows recessions matched with Federal debt. But his thesis rests on the theory
that money is only created by Federal deficit spending. But in the 19th century
in which the Panics, which he list, of 1797 - 1807 - 1819 - 1837 - 1857 and
1873 took place the money in circulation was not created by the Federal
Treasury. And the Federal income which enabled the gradual reduction in war
created debt came from customs duties, sale of public land and other sources
than business or individual taxation. During periods of 7 to 10 years or more
of declining Federal debt he selects one year that conveniently matches the
Panic year.
|
|
|
|
|
| |
|
|
| |
|
|
| |
.
|
, |
| |
.
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
