FINDING THE MONEY – Review by Lois Alter Mark
Two things become abundantly clear upon watching Finding the Money, the new documentary about Modern Monetary Theory (MMT) and the National Debt: 1) We should be teaching kids about money from a very young age 2) People’s reluctance to accept uncomfortable facts may be what ultimately destroys us.
Because the whole idea of economics is so overwhelming, director Maren Poitras has smartly framed the film around the life-and-death question of how we’re going to find the money to address climate change – something most people acknowledge is crucial – in order to invest viewers in the subject matter.
As it turns out, though, that’s not even the right question. According to Stephanie Kelton, Professor of Economics and Public Policy at Stony Brook University and economic advisor to Bernie Sanders during his presidential campaigns, “Finding the money is the easy part.” Kelton, the main voice of Finding the Money, explains that Modern Monetary Theory starts with understanding that, because the Federal government is the issuer of the currency and the creator of every dollar, it can’t run out of money. It can simply print more.
What?! This may sound a little crazy but Kelton and other top proponents of MMT painstakingly go through the history of money – where it comes from, what gives it value – and show quite convincingly that everything we think about the economy is wrong.
It’s mind-blowing.
Kelton and her colleagues are convinced that the obsession with the National Debt is ridiculous and harmful and that the Debt Clock actually represents private sector wealth. Words matter and we must change the narrative to show that we can afford to do the things we need to do to improve people’s lives. They explain that, contrary to popular belief, when the deficit goes up, interest rates have always gone down. Government debt is not the same as household debt and, in fact, during Bill Clinton’s presidency – the only time in recent history when the government budget had a surplus – a major recession followed.
There is so much to think about here – which is something most mainstream economists and government officials are unwilling to do. Although Poitras tries to find one of them to articulately explain why MMT doesn’t make sense, she can’t. Because they can’t. There’s a lot of hemming and hawing and doubling down on the status quo and, instead of providing facts, they just make fun of MMT by calling it names like “voodoo economics.” These are people who, despite all the proof, would have been hard-pressed to admit that the earth isn’t flat.
This is all in a day’s work for Kelton, who says, “First they ignore you, then they ridicule you, then they fight you and then you win.”
The documentary ends with one of Kelton’s colleagues saying, “When I find new evidence, I change my mind. What do you do?” Your answer to that question may determine the fate of the planet.
