February 20, 2020

Does the U.S. Deficit Matter?: An Introduction to Modern Monetary Theory

2020 New Economies Reporting Project Briefing - March 5, 2020

Contact:

Eli - Co-Director, New Economy Coalition eli [at] neweconomy.net

Jeremy - Operations Coordinator, New Economy Coalition jeremy [at] neweconomy.net

Register Here

Under President Trump, the U.S. national debt has risen $3 trillion to a total of $23 trillion, in part because of a $1 trillion budget deficit. Most of this rise can be attributed to the Tax Cuts and Jobs Act ($1.8 trillion) and to unbalanced budgets, driven largely by increased defense spending ($2.2 trillion). In an election year, the rising national debt will become the subject of debate.

Centrists, and most of the right-wing, assert that the government should strive for a balanced budget and minimal debt. They contend that excessive fiscal deficits lead to runaway inflation and raise borrowing costs for businesses, hurting the economy. On the other hand, a new progressive economic movement called Modern Monetary Theory argues that deficits don’t matter to national financial health—that what matters is leveraging money to grow economic capacity.

This webinar will provide an introduction to Modern Monetary Theory through a 7 minute explainer video followed by a Q and A with Francisco Perez. Francisco is a solidarity economy activist and researcher. He has worked on social and economic development projects in Brazil, the Dominican Republic, Guinea, Senegal, Sierra Leone, the US and Venezuela. Francisco is currently pursuing a PhD in economics at the University of Massachusetts at Amherst. He studies international political economy with a focus on monetary policy in West Africa. He holds a BA from Harvard University and a Master's in Public Administration from Princeton University.

Time: Mar 5, 2020 01:00 PM in Eastern Time (US and Canada)