The Deficit Myth

Modern Monetary Theory and the Birth of the People's Economy

By: Stephanie Kelton

Narrated by: Stephanie Kelton

A New York Times best seller

The leading thinker and most visible public advocate of modern monetary theory - the freshest and most important idea about economics in decades - delivers a radically different, bold, new understanding for how to build a just and prosperous society.

Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country.

Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis.

MMT, as Kelton shows, shifts the terrain from narrow budgetary questions to one of broader economic and social benefits. With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT redefines how to responsibly use our resources so that we can maximize our potential as a society. MMT gives us the power to imagine a new politics and a new economy and move from a narrative of scarcity to one of opportunity.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.

©2020 Stephanie Kelton (P)2020 PublicAffairs

Critic reviews

"Kelton's mission in this powerful book is to free us from defunct orthodox thinking about fiscal deficits rooted in the bygone era of the gold standard. Her theoretical canvas is modern monetary theory. At its core MMT offers a simple proposition: In a fiat currency world, the finances of we the people ain't the same as a summing up of our individual budget constraints, because we the people can't go broke, only deficit-spend our collective self into inflationary excesses. In the prevailing era of too-low inflation, the macro policy implication should be obvious: We the people presently have far more fiscal space than the deficit scold, pay-for crowd preaches. Kelton is a gifted writer and teacher and I confidently predict that The Deficit Myth, brilliantly written and argued, will become the defining book on what MMT is - and what it is not." (Paul Allen McCulley, retired managing director and chief economist, PIMCO, and senior fellow, Cornell University Law School)

"Kelton's game-changing book on the myths around government deficits is both theoretically rigorous and empirically entertaining. It reminds us that money is not limited, only our imagination of what to do with it. After you read it you will never think of the public purse as a household economy again. Read it!" (Mariana Mazzucato, author of The Value of Everything: Making and Taking in the Global Economy)

"A remarkable book both in content and timing. A 'must-read' that is sure to influence many aspects of policymaking going forward." (Mohamed El-Erian, chief economic advisor, Allianz)

you won't be the same

1. taxes don't fund the government
2. taxes are used to control inflation
3. a progressive tax is used to diminish influence
4. a jobs program would provide billions of hours toward the public good
This would solve most of our current problems

Enlightening economic knowledge.

I listened to the Audible version and was pleased to admit that the author made it crystal clear. This is a turning point for our time.

Understanding of how a fiat currency should work.

Stephanie Kelton clearly shows how a fiat currency is supposed to work and how it does work in the United States when it comes to supporting wars, corporations, big business etc. but sadly the people's America has not woken up to force Congress to think of the needs of the people in the same way.

A must read book

It will change your view of the eco and your bet in the stock market.
The financial world will be totally different after you finish this book.

MMT, an idea whose time has come (hopefully!)

Effort is required to hear, understand, and accept the monetary approach presented here.

BUT, when the light goes on, it powerfully illuminates both the outmoded, imprisoning, effects of traditional thinking about money and deficits, AND the liberating, humane alternative.
Highly recommend!

Wow..very powerful arguments

Purchased this book because I wanted to hear the antithesis of the Keynesian model. I was very skeptical due to my education. However, I was pleasantly surprised. Well done. I do not agree 100% with all assertions, but 80% is pretty solid.

Love the Tabs vs stab. Great way to explain a complex system in a simple and logical way.

This book is a Copernican moment.

Refocusing our fiscal policy on its effects on inflation and the demands put on our real resources is groundbreaking. The idea that we could be at this point in our history and these fundamental concepts would be in some way controversial is dispiriting.

Radical/promising view of monetary + fiscal policy

Dispels the myths that hold us back as society. This is the start to exposing the poltical economy that limits our potential for a real “democratic” system where poltics and economy can be harmonized. All boats can truly rise together.

Great book if a little too long

I loved the first half. Really mind expanding and educational. The second half felt like it was really just nailing home the same point again and again.

Heartily recommend though. I learned a lot about money and the economy. Definitely makes me look at the debt ceiling theatre through a new lens.

Must Read. Must Listen. Must Implement.

If you interact with the modern economy, this is a necessary download, especially if you’ve been allures by the sugary bullshit that is Reaganomics.