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Public Purpose over Private Interests
Modern Monetary Theory (MMT) offers a coherent framework for achieving economic security and equal opportunity for all. Contrary to popular belief, it shows that a currency-issuing government is not revenue-constrained but rather limited by real resources. With monetary sovereignty comes responsibility—to pursue full employment, stable prices, and shared prosperity. Yet today's rules and spending overwhelmingly favour those who already have wealth and power.
MMT recognizes that government budget constraints are not financial but rather relate to real resources and power dynamics. The sovereign government's money comes not from tax revenues or bond sales but from the authority to issue the national currency. Unemployment thus means our nation fails to mobilize the latent skills and energies of communities ready to build futures as a model for their kids. When some claim government must get its financial house in order rather than fund fair chances, they deny monetary sovereignty and the duty to nurture society's unrealized potential.
The limits we face are real resources to develop, not the funds government could create to cultivate opportunities wherever eager hands await purpose. Transitioning to this viewpoint would refocus policy on equitable access and participation.
Moreover, for MMT, unemployment indicates underutilized resources, not excess savings. Therefore, a currency-issuing government must inject enough spending to fully engage willing and able workers in worthwhile jobs at stable living standards. If most areas’ jobs depend on a monopsonist's whims, this responsibility goes unfulfilled.
Claims that financial constraints prevent funding fair opportunities are misleading and often used to justify the concentration of wealth and control. In reality, such claims ignore the fact that funding decisions are often driven by priorities and values rather than actual financial limitations. Government can and should provide alternative paths where private gates are shut. Public programs could welcome diverse participants.
Competition policy plays a critical role in creating a level playing field that enables new entrants to compete with established firms and drive innovation and growth. Concentration and monopoly power can stifle competition and limit opportunities for workers and communities. Modern Monetary Theory (MMT) recognizes the importance of breaking up mergers and promoting diverse participation to foster a more equitable and dynamic economy. In this context, here are some policy suggestions informed by MMT that could help align power and prospects for workers and communities, opening paths to brighter futures and shared prosperity.
Policy suggestions:
Cap essential prices and loan rates to curb price gouging
Break up mergers and unwind concentration to welcome new entrants
Fund worker buyouts and co-ops to spread wealth and decision-making
Provide public venture capital for startups in concentrated markets
Weight government procurement and investment by pay and opportunities, not just low bids
Ban practices that sabotage outsider prospects to maintain dominance
Allow domestic policy exceptions to global rules for equal opportunity
MMT provides a lens to see the policy choices we deny ourselves by believing financial limits rather than real resources shape government's role. Rather than stabilizing unequal gains from rentier control of opportunities, policy could invest in latent human capacity, welcoming talents now discarded to hold down wages or extract rents. By aligning power and prospects for workers and communities, not just those at the top, the government could open paths to brighter futures and shared prosperity. Today's crises show the price of inequality and ignorance of our monetary sovereignty— collective potential squandered for elite gain.
Recognizing Modern Monetary Theory (MMT) helps us understand that fair and thriving societies are achievable within our economic means if we choose to invest in them.
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