Discredited Fiscal Policy Framework on Display in Democratic Primary Debates

WASHINGTON, March 13, 2020 /PRNewswire/ -- The Our Money campaign calls on the media to note that thus far the Democratic primary debates and town halls have featured numerous examples of the false "pay for" debate. These displays show the extent to which our political discourse is captive to fundamentally false assumptions. Typically, it has been Senator Bernie Sanders who is attacked for the cost of his "Medicare for All" healthcare plan. Sanders himself does not challenge the assumption that his health care plan must be "paid for" with new revenue. However, as we have recently seen with the coronavirus response package, Congress is entirely able to simply authorize spending through Congressional appropriations without any tax offsets. As long as the inflation risk associated with the spending is low or at least manageable, this is an entirely responsible practice. 

The focus of concerns about "costs" of "Medicare for All" should not be how we will "pay for" the spending. Instead, the question should be what measures, if any, will be necessary to offset inflation risk. There is a clear lack of public awareness of these basic implications of the federal government's power as currency issuer to appropriate whatever funds it sees fit. As a result, our discourse is hampered by an exaggerated sense of the tradeoffs associated with responsible federal spending. This distorts the public debate and public opinion in ways that are harmful to the general public, and particularly the black community.

About Our Money
Our Money is a campaign which seeks to popularize an understanding of the importance of our public power of money creation and demand that it be used on behalf of the public to the fullest extent responsible, rather than diverted towards private interests.

Contact for inquiries: 
Tomeka B. Scales, Ph.D.
Program Director 
Our Money
www.ourmoneyus.org
[email protected] 
FB/IG/Twitter: @ourmoneyus
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