Mind you, I’m not talking about ‘framing’, but simply the justification for the policy (I’ll the propaganda for another time). I’m encouraged that Matthew Yglesias, who writes for the Center for American Progress, a progressive outfit, has stumbled into modern monetary theory (italics mine):
Does anyone seriously deny that there’s something these people could be doing that would be more useful than being unemployed? Now ask yourself this. Suppose you had more money. Would you buy more goods and services? I would. And if more people were buying more goods and services, then wouldn’t firms need to hire more people to provide those goods and services? I don’t see any way around it. So why not put some money into people’s hands so they can go out and buy more goods and services? Maybe you think we can’t do that because “the money has to come from somewhere.” But it doesn’t. It’s fiat currency, we can just make more. It’s true that if we print more and more money that at some point we’ll soak up all the idle people and it’ll start to spark inflation. And that would be an excellent time to stop trying doing it. But what’s stopping us today?
That’s the argument we have to make: we have an employment deficit. And we know how to fix it.
But what I find really encouraging, and I hope it spreads, is the recognition that deficits aren’t a problem per se when you have a fiat currency, any more than gold mining was a problem when we were on the gold standard–only now we can create as much gold as we need, when we need it.
Stupid deficit spending can be bad policy, just as stupid budget cutting can be. It’s what we do while we’re increasing or decreasing deficits that matters. So let’s tackle that employment deficit. Because that’s what matters right now.