Wyvernsridge 🌻
https://michaelwest.com.au/new-report-peter-duttons-nuclear-power-plan-to-cost-4-3-trillion/
If anybody raises the nuclear energy policy with you, just point out the actual cost, and ask them where the money will come from
The Sleight Doctor 🃏@Wyvernsridge Since Australia issues its own currency, the money would be magicked out of thin air like it always is. Taxes don't fund national spending in Australia, New Zealand, the UK, the USA and several other countries. The Australian government isn't a user of the currency, it's the monopoly issuer. It *is* the money.
Dutton needs $4.3 trillion, Parliament authorizes the spend, and the Reserve Bank of Australia presses some buttons. Hey presto.
Duncan Bayne@ApostateEnglishman @Wyvernsridge I really had hoped that the economic consequences of the COVID lockdowns had put the nail in the coffin of MMT. But people have short memories.
@duncan_bayne @Wyvernsridge Be more specific?
@ApostateEnglishman @Wyvernsridge AICD has an article here: https://www.aicd.com.au/economic-news/australian/outlook/australian-economic-outlook-post-pandemic-inflation.html
But roughly, printing money to fund COVID lockdown subsidies had exactly the inflationary impact that critics of MMT predicted.
@duncan_bayne @Wyvernsridge Economic activity ceased due to lockdown measures, savings accumulated because people couldn't spend. When restrictions were lifted there was a consumer spending splurge, compounded by price-gouging corps who took advantage to artificially raise prices (here in the UK, notably on energy), while posting record profits. This is informally known as "greedflation". It had nothing to do with government spending and was predicted by #MMT.
Hey @DrALJONES , we should probably cover the temporary post-pandemic inflation, because I keep seeing people saying this is proof "printing money" devalues currency, as opposed to stalled (almost non-existent) economic activity and excess household savings due to lockdowns. Yeah, that'll do it. But we knew that already.
I don't have the spoons at nearly 2am, perhaps you could step in!
DrALJONESRe "printing money to fund COVID lockdown subsidies..." *
Just to indicate the thrust of myriad scholarly analyses of post-pandemic inflation:
"It would be a mistake to only claim inflation was only due to government spending. Other countries in Europe, without the same fiscal stimulus, have seen very similar rates of inflation."
https://www.economicshelp.org/blog/169072/economics/to-what-extent-did-covid-cause-inflation/
Note: causes not addressed by source cited
* keystrokes, not printing
To what extent did Covid cause inflation? - Economics Help
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China…