Monday, April 11, 2016

Modern Monetary Theory Is Moronic

Forum thread: MMT = Moronic Monetary Theory


MMT is incredibly moronic.

Imagine that it's Trump versus Clinton. Let's say that Trump loses the election by 125 electoral votes. But what are electoral votes? They are simply electronic numbers... they aren't by any means real. Therefore... we could simply give Trump more electoral votes than Clinton and voila! Trump would be our next president! Yay for fiat votes! Yay for subverting the will of the people!!!

The point of voting is to figure out who should have more influence. And the incredibly obvious thing about influence is that it is mutually exclusive. This is painfully obvious. It's stupidly obvious. Influence is a zero-sum game? Yes... DUH.

Let's say that all the MMT members of this forum decide to dollar vote for me. We'll pretend that there are 10 MMT members and each one of them paypals me $1000 dollars. That's a lot of dollar votes! I would gain $10,000 dollars worth of influence. But, because influence is a zero-sum game... it was only possible for me to gain this influence because each one of these 10 members was willing to voluntarily give up a $1000 dollars worth of influence. My gain was their loss. Their loss was my gain. This is how influence works.

Now let's apply this incredibly obvious concept to our entire economy. But, let's keep it simple stupid and say that our entire economy only produces two goods...

1. food (a private good)
2. defense (a public good)

The private sector produces food and the public sector produces defense. What would happen if we gave the defense producers more influence? Clearly this would mean that the food producers would have less influence. As a result, defense producers would be able to compete more of society's limited quantity of "Einsteins" away from food producers. More Einsteins solving defense related problems means less Einsteins solving food related problems. So we'd see more improvement/progress in the supply of defense and less improvement/progress in the supply of food.

If Forest Gump had been a real person then even he would have been able to understand this. His IQ was theoretically 75. Anybody who fails to understand how and why MMT is incredibly moronic must have an IQ that's lower than 75.

If you can understand how and why MMT would subvert the will of the people... then clearly your IQ is over 75. But is your IQ over 95? Let's find out.

In the private sector we all use our dollar votes to determine how influence should be distributed. And since your IQ is over 75... you understand that influence is a zero sum game. So what happens when, via democracy, we give people like Barak Obama and Elizabeth Warren more influence? It means that the people that we dollar voted for will have less influence.

If you can understand how and why democracy subverts the will of the people... then clearly your IQ is over 95.

Here are two ways that we can help prevent the will of the people from being subverted...

1. Replace voting with spending
2. Allow people to choose where their taxes go

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