Why Doesn't the Government Just Print More Money? Some Economists Are Arguing for More Money

In his classic 1962 book Capitalism and Freedom, Nobel Prize-winning economist Milton Friedman argues that a society cannot maintain political freedom without a robust commitment to free-market capitalism—and that for capitalism to function best, it must be free of government interference. It is hard to overstate the extent to which Friedman’s once-controversial ideas have triumphed. Over the past 40 years, governments across the world have moved to market-based solutions by reducing marginal tax rates, eliminating tariffs, privatizing public monopolies, and introducing choice in public education. Some might disagree about the effects of Friedman’s ideas—but no one can deny their influence.

Have you ever wondered how the economy works - how millions of individuals can buy and sell goods and services without a master coordinator? Have you wondered why we use money, rather than bartering our services with each other? Why do some nations prosper, while others stay poor despite vast natural resources?

Basic Economics by Stanford economist Thomas Sowell is an incredibly useful, broad introduction to economics. Containing no math, it instead communicates intuitive principles that will help you understand how market transactions work and the effect of policies on the economy. Understand how prices for goods are set, why rent control has bad side effects, and the purpose of brand names.

In The Deficit Myth, economist Stephanie Kelton contends that nearly all of the public discourse about national debts and deficits gets the facts entirely wrong. A leading proponent of Modern Monetary Theory (MMT), Kelton champions more aggressive deficit spending by arguing that the U.S. government could finance any program it wishes to create. She advocates a more holistic view of the economy—contending that we ought to focus on poverty reduction, combating climate change, and building a more just and equitable society as the true measures of economic success, rather than focusing solely on the narrow budgetary impacts of legislation.

This guide adds perspective from other economic experts—including voices from outside the MMT community who question Kelton’s theories—in order to present a more nuanced and balanced view of the economic ideas in the book.

In his classic 1962 book Capitalism and Freedom, Nobel Prize-winning economist Milton Friedman argues that a society cannot maintain political freedom without a robust commitment to free-market capitalism—and that for capitalism to function best, it must be free of government interference. It is hard to overstate the extent to which Friedman’s once-controversial ideas have triumphed. Over the past 40 years, governments across the world have moved to market-based solutions by reducing marginal tax rates, eliminating tariffs, privatizing public monopolies, and introducing choice in public education. Some might disagree about the effects of Friedman’s ideas—but no one can deny their influence.

In The Deficit Myth, economist Stephanie Kelton contends that nearly all of the public discourse about national debts and deficits gets the facts entirely wrong. A leading proponent of Modern Monetary Theory (MMT), Kelton champions more aggressive deficit spending by arguing that the U.S. government could finance any program it wishes to create. She advocates a more holistic view of the economy—contending that we ought to focus on poverty reduction, combating climate change, and building a more just and equitable society as the true measures of economic success, rather than focusing solely on the narrow budgetary impacts of legislation.

This guide adds perspective from other economic experts—including voices from outside the MMT community who question Kelton’s theories—in order to present a more nuanced and balanced view of the economic ideas in the book.

In his classic 1962 book Capitalism and Freedom, Nobel Prize-winning economist Milton Friedman argues that a society cannot maintain political freedom without a robust commitment to free-market capitalism—and that for capitalism to function best, it must be free of government interference. It is hard to overstate the extent to which Friedman’s once-controversial ideas have triumphed. Over the past 40 years, governments across the world have moved to market-based solutions by reducing marginal tax rates, eliminating tariffs, privatizing public monopolies, and introducing choice in public education. Some might disagree about the effects of Friedman’s ideas—but no one can deny their influence.

Have you ever wondered how the economy works - how millions of individuals can buy and sell goods and services without a master coordinator? Have you wondered why we use money, rather than bartering our services with each other? Why do some nations prosper, while others stay poor despite vast natural resources?

Basic Economics by Stanford economist Thomas Sowell is an incredibly useful, broad introduction to economics. Containing no math, it instead communicates intuitive principles that will help you understand how market transactions work and the effect of policies on the economy. Understand how prices for goods are set, why rent control has bad side effects, and the purpose of brand names.

Many people, from hedge-fund managers to Reddit commentators, are growing increasingly concerned about the possibility of runaway inflation, fueled by fiscal stimulus and a pent-up spending spree as the pandemic winds down. Fortunately, the chances of hyperinflation are low: inflation rates are below 2% and unemployment is high. The bigger danger is that the Fed overreacts to any hint of inflation by raising interest rates and accidentally plunges the economy into recession.

In The Deficit Myth, economist Stephanie Kelton contends that nearly all of the public discourse about national debts and deficits gets the facts entirely wrong. A leading proponent of Modern Monetary Theory (MMT), Kelton champions more aggressive deficit spending by arguing that the U.S. government could finance any program it wishes to create. She advocates a more holistic view of the economy—contending that we ought to focus on poverty reduction, combating climate change, and building a more just and equitable society as the true measures of economic success, rather than focusing solely on the narrow budgetary impacts of legislation.

This guide adds perspective from other economic experts—including voices from outside the MMT community who question Kelton’s theories—in order to present a more nuanced and balanced view of the economic ideas in the book.