Dean Baker sits down with Stephanie Kelton to unpack the core ideas of Modern Monetary Theory (MMT). Kelton dispels common misconceptions about government spending, emphasizing that the real constraint on public programs is not money, but the availability of real resources like skilled workers and infrastructure. The conversation explores the mechanics of government finance, the implications of deficits, and current policy debates, including the risks posed by tax enforcement cuts and the impact of rising interest payments. Together, Baker and Kelton offer a fresh perspective on federal budgeting, inequality, and the economic challenges ahead.
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