Deficit Owls | Government Deficits Are Largely Endogenous @deficitowls5296 | Uploaded August 2016 | Updated October 2024, 1 hour ago.
Professor L. Randall Wray, demonstrating the largely endogenous nature of budget deficits. The biggest change in tax revenues is determined by the state of the economy (when the economy tanks, tax revenue drops) and many spending changes are non-discretionary (unemployment insurance, for instance). So on net, the biggest impact on the government budget is the private sector.
(Although, MMT would actually increase these so-called "automatic stabilizers," by implementing a Job Guarantee, where the number of workers employed by the public sector would move to exactly match the level unwanted by the private sector.)
See the whole video here: youtube.com/watch?v=zdvp5aEW_Z0&index=14&list=PLRAI_WnbL7Z1zHbE7Pc3lCk_KIEwgIm3t&spfreload=1
Professor L. Randall Wray, demonstrating the largely endogenous nature of budget deficits. The biggest change in tax revenues is determined by the state of the economy (when the economy tanks, tax revenue drops) and many spending changes are non-discretionary (unemployment insurance, for instance). So on net, the biggest impact on the government budget is the private sector.
(Although, MMT would actually increase these so-called "automatic stabilizers," by implementing a Job Guarantee, where the number of workers employed by the public sector would move to exactly match the level unwanted by the private sector.)
See the whole video here: youtube.com/watch?v=zdvp5aEW_Z0&index=14&list=PLRAI_WnbL7Z1zHbE7Pc3lCk_KIEwgIm3t&spfreload=1
