Paul Krugman’s critiques have been debunked repeatedly and yet he continues to trot them out. He doesn’t even understand, in 2019, that loans create deposits and not the other way around.

Inflation is not as simple as increasing the money supply. That doesn’t even touch the question of what kind of money we’re talking about. Deposits? Reserves? Any financial assets?

At a minimum, inflation is caused by too many dollars chasing too few real real assets. It’s not even clear what the inflationary effect a federal program like Medicare for All would be, even though that would be a huge NET injection of financial assets to the non-public sector. It may very well be a deflationary event because it eliminates an entire industry and would spike unemployment briefly. So a program like Medicare for All may require a tax holiday rather than increase.

Corporate accountant and former auditor with degrees in philosophy and accounting.

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