We found that found that almost two thirds of people don't know what a 'government deficit' is, and two out of every five citizens don't know what 'austerity' means. But it would be wrong to blame the public for this lack of knowledge. The Office of National Statistics had to give former Prime Minister David Cameron a lesson on debt and deficits after he mixed the two up in a Conservative Party political broadcast.
Rethinking fiscal policy: Progressive US politics meets radical economics
Our poll found that the BBC is the most trusted source on economy, but BBC journalists repeatedly fail to challenge false austerity narratives. One of the most depressing things about our poll's findings is seeing how successful these narratives have been.
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As a consequence, we have a democratic deficit and political leaders are not being held to account for initiating unnecessary public spending cuts. It's time for a mass economics education programme so people can decide for themselves.
So what does a mass economics education programme look like? Under this theory, if the government did spend enough to stoke inflation, it would be counteracted not by the Federal Reserve hiking interest rates, as it does today, but by the president and Congress agreeing to raise taxes to pull money out of the system — assuming they would be willing to take that politically unpopular step.
Interest rates would be pegged at a low level. Kelton, who also served as chief economist to Sanders I-Vt. But she called for a reconsideration of how spending and deficits are viewed. Jason Furman, who served as chief economist for President Barack Obama, also suggested that expecting Congress and the president to raise taxes to fight inflation was impractical.
Under MMT, Democrats would still need to set priorities for many of the projects they want to pursue, like new infrastructure, particularly when the economy is faring well, Kelton said. Skip to Main Content. Continue to article content. Share on Facebook Share on Twitter.
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