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Modern Monetary Theory: Musk Edition
(thelemmy.club)
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this post was submitted on 24 Jul 2026
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I mean fuck Elon, but y'all know that we could issue people checks right? Like we could do universal basic income and it wouldn't increase inflation as long as it's done right. Increasing the supply of money is not the mechanism that causes inflation.
We're already straining the resource capacity of the globe, and Americans are an enormous consumer endpoint relative to population size.
Simply issuing more cash won't create more end products. And when a handful of cartelized retailers control the flow of trade?
Prices are already artificially inflated to accommodate marketing costs and profit. Why retailers continue to raise prices to catch that additional free cash?
That's actually complex issue. Trivial model would probably suggest it will cause inflation proportional to the amount of created money. But market behavior is complex and you could get away without inflation if checks were small enough.
The bigger issue would be government creating money directly circumventing Central Bank - that perverts political incentives and is potentially a downhill towards catastrophic collapse