Unlocking Prosperity: The Role of Real Resources in Modern Money Theory (MMT)
The Role of Real Resources
In a previous discussion on Modern Money Theory (MMT), we established the four core facts of a sovereign currency. Now, we delve into the ultimate determinants of a nation's prosperity, which are its real resources. These encompass the skills of its population and its natural resources, such as solar power derived from the sun.
A government that issues its own currency has the unique capacity to ensure that all available productive resources for sale in that currency, including all idle labour, can be effectively utilized. This means it can engage these resources in the production of goods and services, which is the foundation for prosperity.
The productive deployment of all available resources is, therefore, a necessary condition for prosperity, according to Modern Money Theory (MMT).