Good piece Denys.
Jason E

I love the MMT v. Austrian debate, but from a layman’s view Mosler didn’t deliver any knock outs. I think the knock out came from the question from the audience/attendee at 1:20 when he related Austrian economics to the gold standard and the “MANY” failures we experienced with it that resulted from the government defending the reserve in downcycles because it was artificially constrained from exercising its monopoly power to create currency or lower taxes.

While the great depression of ’29 is the textbook depression often used we can’t lose sight of the “FACT” that the only 7 times we came within shouting distance of a balanced budget in our history resulted in 6 depressions and the current recession that was only kept from being a depression by massive injections of liquidity into the system. Correlation doesn’t equal causation, but it’s more than coincidental that the conditions leading up to each of those also coincided with some major wars. I believe that our unenviable history of war is largely due to the economics of scarcity, which is what Austrian and Chicago economics, IE: Friedman, is all about. Letting capitalism artificially create scarcity, especially in employment, to maximize profit is a major causation of wars as asset and currency exchange are manipulated artificially.

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