Sunday , April 18 2021
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Summary:
1. Part two if my critique of MMT is finally available online here. Part one is here. 2. Commenter Lin asks: If attempting to control the supply of food kills one hundred million people, then why do economists think controlling the supply of money will yield a better result? I presume Lin is referring to the Fed controlling the supply of Fed money. This is how markets work. Ford controls the supply of Ford cars, Apple controls the supply of iPhones, and the Fed controls the supply of Fed money. It’s a free country and alternatives such as travelers checks, Bitcoin, one ounce bars of silver, and other types of money are freely available if you don’t like using Federal Reserve Notes. 3. Until I read this four part series, I knew nothing about the guy who was

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1. Part two if my critique of MMT is finally available online here. Part one is here.

2. Commenter Lin asks:

If attempting to control the supply of food kills one hundred million people, then why do economists think controlling the supply of money will yield a better result?

I presume Lin is referring to the Fed controlling the supply of Fed money. This is how markets work. Ford controls the supply of Ford cars, Apple controls the supply of iPhones, and the Fed controls the supply of Fed money.

It’s a free country and alternatives such as travelers checks, Bitcoin, one ounce bars of silver, and other types of money are freely available if you don’t like using Federal Reserve Notes.

3. Until I read this four part series, I knew nothing about the guy who was recently fired by the NYT for supposedly being a “racist”. Now I know that his views are pretty much like mine. I’ve also learned that someone with my sense of humor and/or my political views is not welcome at the NYT. And that’s fine with me. Most of all, I’ve learned that a sizable fraction of the people who work at the NYT are totally insane. Especially the younger employees. And I’ve learned that some teenage girls have no sense of humor. The Great American Bourgeois Cultural Revolution rolls on.

And as Robin Hanson might say, anti-racism isn’t about anti-racism.

4. I also recently learned that Hispanics living in America are imprisoned at a lower rate than whites, but only since Trump took office in 2017. Before then, Hispanics were imprisoned at a higher rate than whites.

If you like Trump you’ll say this proves that he’s not bigoted against Hispanics. If you despise Trump (like me), you’ll say it shows he was wrong to characterize Hispanic immigrants as rapists and murderers.

And if you work for the NYT, you’ll insist it should be spelled “Hispanix”.

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Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

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