Topic1 This made me happy!
Hey, we’re living in a material world! Through the long history of human beings, some made great progress to open up new way of life.
Then, what do you appreciate the most?
1 What is the greatest innovation of all time for you?
2 Then, what’s the most lame innovation?
3 Is there anything you can’t live without?
Topic 2 “MMT - Is it Doraemon, or it it just a fantasy?”
This is the sequel of my previous presentation “Can we save ourselves?”
MMT, Modern Money Theory or Modern Monetary Theory, is nothing new, or it’s not even a suggestion, but a description for phenomena that already occurred around the world.
Please, please do understand basics of MMT, in Japanese. It’s NOT that hard and head-spinning.
Firstable, what is “good economy”?
Good economy is an economy that people spend. Money is only paper and metal. Money itself is useless. Money makes us happy, do good to the society only when it is actually used. MMT focuses on how to make people spend more.
You need to understand just these facts.
1 If the government can issue currency without borrowing, government’s expenditure do not need to rely only on taxes. We can issue government bonds. Do you think it's a crazy idea? Not really. Japanese yen is a simple public monopoly. Yen only comes from Japanese government, not from anywhere else.
2 Government is not household. Deficit does not matter as it does in our daily lives.Of course if it becomes too big, it will end up with unemployment and inflation. Then, Japanese government says that “Japan has too much deficit”. Is it so? - Wrong! We don’t need to do anything about the deficit. Who loans the money to Japanese government? Us! We are the ones who loans the money. When Japanese government issues bonds, banks buy them. Then, How the bank get that money? It’s our deposits, isn’t it? Someone’s loss is another’s surplus.
3 Many economists who vituperate MMT say it will cause hyperinflation. Is it true? The answer is no. Why inflation? It’s a balance of supply and demand. Hyperinflation is like “day to day Yahoo auction”. People’s demands far surpass supply capability, prices get higher. We have great supply capability. Hyperinflation will happen only when Japan gets into the war and burnt down everything, or by Martians attack.
4Taxes drive money. This is simple. Money goes to anywhere “less tax”. If corporate tax is lowered companies will save money. If sales tax is higher ed, we won’t spend as much as we used to. In other words, taxes can make a big stream of spending money.
https://theglobepost.com/2019/03/28/stephanie-kelton-mmt/
https://toyokeizai.net/articles/-/273275
That’s it. Basics of MMT.
Isn’t it simple?
Then questions.
1 How do you think about MMT? Does it fit in Japan?
2 The most important part is how Japan use money. We all know that “Trickle down” never happens and Fountain pen money does not make us rich. What do you come up with idea of using money to make Japan richer.
Glossary
社会保険料 Social insurance premium
真水 stimulus package
公共事業 public works
控除 deduction
実体経済 real economy
金融経済 monetary economy
異次元緩和 radical quantitative and qualitative monetary easing
財政出動 fiscal stimulus
日本列島改造論 the Plan for Remodeling the Japanese Archipelago
所得倍増計画 Income doubling plan
万年筆マネー fountain pen money
累進課税 progressive tax system