History’s Lesson for Democrats: Don’t Be Afraid of Economic Experiments
Trump’s corporate tax cut? Not as damaging as expected. Quantitative easing? Worked out fine. So let’s not dismiss the latest idea, modern monetary theory.
Let’s see what happens.
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The raging debate over modern monetary theory is part of a larger struggle over what type of thinking should govern Democratic economic policy as the party looks ahead to retaking power in Washington in the 2020s. MMT — a school of thought championed by economist and Bloomberg Opinion contributor Stephanie Kelton that explores the fiscal possibilities open to a government that issues its own currency — is just the latest clash. As the 2010s wind down, we can see that heterodox risks taken over the past decade haven’t been damaging, as some thought they would be. In the same span, mainstream economic thinking has often fallen short. Democrats should give heterodox ideas more of a chance.
Three policy paths taken over the past decade have had their mainstream critics, but the fears have not come to pass.