Deficits can be a tool for achieving social justice from "summary" of The Deficit Myth by Stephanie Kelton
Deficits are often viewed as a negative aspect of government finances. They are seen as a burden that must be reduced or eliminated in order to achieve a healthy economy. But what if deficits were not inherently bad? What if deficits could actually be a tool for achieving social justice? This concept may seem counterintuitive at first, but it is a central theme in understanding modern monetary theory.
The prevailing belief is that the government must balance its budget like a household, spending only what it can afford. This belief leads to austerity measures that cut social programs and limit government spending, all in the name of fiscal responsibility. However, this approach ignores the fact that the government has the power to create money out of thin air. Unlike households, the government can never run out of money.
By embracing deficits as a tool for achieving social justice, we can shift our focus from balancing the budget to balancing the economy. Deficits can be used to fund programs that benefit society as a whole, such as healthcare, education, and infrastructure. These investments can create jobs, stimulate economic growth, and reduce inequality.
Furthermore, deficits can be a powerful tool for addressing pressing social issues, such as poverty, unemployment, and climate change. By using deficits to fund programs that address these issues, we can create a more equitable and sustainable society. Instead of viewing deficits as a burden to be minimized, we can see them as a means to achieve social justice and build a better future for all.
In order to fully leverage deficits as a tool for achieving social justice, we must rethink our understanding of government finances. We must recognize that deficits are not inherently bad, but rather a necessary component of a functioning economy. By embracing deficits and using them strategically, we can create a more just and prosperous society for everyone.
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