Today’s
fundamental problem is the fallacious mainstream theories about
economics which are put forward as the best set of rules. The mostly
academic theorists set out basics which ignore many fundamentals but
they have the ear of the political class and the mainstream media goes
along with it.
Almost everybody goes along
with this. Probably the only exceptions are the Central bankers, like
Greenspan, who actually tell it like it is, but they are ignored. When
the Queen asked the LSE [London School of Economics] why no one foresaw
the GFC, they had no answer. Nothing in their theories suggested it
could happen.
In reality there are some so
called heterodox theories which do explain macroeconomics as it actually
exists, but selling them is very difficult as the mindset of most
people is locked into the false theories. MMT is one and is gaining
attention. It gets plenty of flak, but no one has been able to counter
its principal arguments. It’s being opposed because the prevailing
mindset is frozen in place.
It’s along story and much more needs to be said.