Episode 9

MMT Through the Eyes of a Socialist

In this episode, we talk with Bob Murphy about a recent essay in Jacobin Magazine by Doug Henwood entitled Modern Monetary Theory Isn’t Helping. The essay offers a criticism of MMT from a socialist perspective and includes a helpful discussion about the background and roots of the MMT trends.

Episode 9

MMT Through the Eyes of a Socialist

In this episode, we talk with Bob Murphy about a recent essay in Jacobin Magazine by Doug Henwood entitled Modern Monetary Theory Isn’t Helping. The essay offers a criticism of MMT from a socialist perspective and includes a helpful discussion about the background and roots of the MMT trends.

--All Subscription Links--

March 20, 2019

Episode Notes

In this episode, we talk with Bob Murphy about a recent essay in Jacobin Magazine by Doug Henwood entitled Modern Monetary Theory Isn’t Helping. The essay offers a criticism of MMT from a socialist perspective and includes a helpful discussion about the background and roots of the MMT trends. It seeks to unravel MMT as a “neoliberal” (a favorite phrase on the socialist left) scheme that should not be taken seriously.

It argues that MMT fails to appreciate the difference between money creation and the real resource constraints of the actual economy and, moreover, that MMT proponents are wrong on very basic mechanistic facts about the current banking system as it exists in the United States.

Bob interacts with this essay and elaborates on some of the themes and provides an Austrian context for Henwood’s take on MMT and its various shortcomings.

Links and Details

Surprised you're still on this page tbh.

Robert P. Murphy, who holds a Ph.D. in economics from New York University, is a Research Assistant Professor with the Free Market Institute at Texas Tech University and a Research Fellow at the Independent Institute. Additionally, he is a Senior Fellow at the Mises Institute. 

He is the author of numerous books, including Choice: Cooperation, Enterprise, and Human Action (Independent Institute, 2015), as well as study guides to Ludwig von Mises’ Human Action (study guide here) and The Theory of Money and Credit (study guide here), and Murray Rothbard’s Man, Economy, and State (study guide here).

Modern Monetary Theory Isn’t Helping, by Doug Henwood

Austro Libertarian podcast episode 8 on the categorization of Democratic Socialism.

Louis Rouanet’s short Mises Wire piece on Karl Marx as an advocate of hard money. Lenin and Marx: Sound Money Advocates

Bob Murphy’s interview of Warren Mosler on Murphy’s podcast

Bob Murphy’s debate with Mosler from 2013

Bob Murphy’s critique of MMT’s claim that government deficits equal net private savings