MMT and the Green Economy

One of the obstacles that has been listed to stopping climate change is having enough money to transition away from fossil fuels and heal the damage done to our environment.   It is true that in the way we currently run our economy that is not possible.We know that it’s still possible to avoid the worst impacts of climate change if we transition to renewable energy sources without delay.  We know that we can contribute to a just and equitable society with dignity for all, if we build this green infrastructure as rapidly as possible.

The tools to a sustainable climate are in our hands right now:  wind, solar, wave.  So what keeps us trapped in a fossil fuel world? How can we break our addiction to fossil fuels in a way that puts people and community above the profits of giant corporations?

This work group will work on educating the public about an economic model MMT that could support a green economy, will support a WA state bank as a way of saving the state money for green development and will work with unions to help develop a forward thinking transition plan that does not leave workers stranded without jobs.

What is Modern Monetary Theory (MMT?).  At the center of MMT is the understanding that “modern” money has existed in the U.S. since 1971, when we were taken off the gold standard.  Today, banks create money essentially out of thin air, as ledger entries on computer keyboards when loans are made to people.  This is how new money enters the economy.  Even the government borrows money and pays them interest, increasing the deficit.

Instead, MMT calls upon governments to create the money for themselves, spending it into existence via community grants for community-owned projects.  Think of how quickly this would allow us to build the green infrastructure and provide the jobs we need!   Since the money created would be balanced by the goods and services created, as such it would not increase the deficit or lead to inflation. And because it can be spent on a multitude of social needs, it could help build alliances across social movements.

Bernie Sanders understood the important potential of modern money.  In fact, his economic advisors on the Senate Budget Committee and to his presidential campaign were top MMT people Stephanie Kelton and Bill Black. 
What can we do? Today there is a huge need for people to learn about MMT and to spread this understanding to everyone for neighbors to policymakers.  The time to act is now.  Sign up today to help bring this important tool into the public mind, and into reality!

To see a video introduction to MMT for the activist community, go to:

Why A State Bank?  As described before when money is borrowed by a government like the State of WA they have to pay back the interest to the bank they borrow from.   ND which has the only state bank can make loans to the state which are paid back but the interest goes to the state not the bank, thus it adds money to the state's budget and has added to the financial stability of the state.  We could use this sort of money to fund green development, and our schools!

A Transition to a Green Economy has to be a Just Economy.   We need to be thinking ahead of time about what kind of work workers can do when they leave the fossil fuel industry.   Forward thinking unions know you cannot block the passage of time and the change of industry.   It therefore is in the best interest of their union members to also be actively involved in creating transition plans.

1 comment:

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