Kelton is a proponent of Modern Monetarist Theory, MMT. Written without a mathematical formula or spreadsheets to bamboozle the reader, this most readable book lays out how America came to this point, and how very much more it could do for itself if it would just open its eyes to it. This is the essence of the powerfully shocking The Deficit Myth, economist Stephanie Kelton’s book on Modern Monetary Theory.

Instead of fiscal deficits, we should be looking at the deficits in society, because we can do everything to alleviate them with our currency power and expanded deficits. It can always fund social security and Medicare, and many other programs besides. As the monopolist controlling American currency, the government doesn’t ever have to worry about running out of money. We’ve wasted a century looking at government as if it were a family or a business. MMT gives us the power to imagine a new politics and a new economy and move from a narrative of scarcity to one of opportunity. With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT redefines how to responsibly use our resources so that we can maximize our potential as a society. MMT, as Kelton shows, shifts the terrain from narrow budgetary questions to one of broader economic and social benefits. Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country. Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. The leading thinker and most visible public advocate of modern monetary theory - the freshest and most important idea about economics in decades - delivers a radically different, bold, new understanding for how to build a just and prosperous society.

The deficit myth