Exploring Modern Monetary Theory with Steve Grumbine

“Are Progressives like 8-bit robots walking into walls when it comes to understanding economics?”

Sean’s Monologue: Kamala Harris & Healthcare

Today we welcome special guest Steve Grumbine, founder and CEO of the nonprofits Real Progressives and Real Progress in Action. Steve is here to tell us how Modern Monetary Theory could benefit the working class American – and why it doesn’t. If you think a podcast on economics will be dry and dull, you’ve never heard Steve’s animated and passionate viewpoints on the subject.

Steve and Sean start the episode by reflecting upon the most recent presidential debate, then Steve launches right into the truth about our nation’s economy. While explaining the term “austerity” as it relates to macroeconomic models, Steve dispels the myth that if a government spends money on its people, it will cause inflation. We learn about the history of the federal reserve and how it works, what the federal deficit actually means, and what taxes really are and why they exist. Steve teaches us the difference between a “currency user” and a “currency issuer”, along with explaining how inflation works and why he hates using the term Modern Monetary Theory.

What would an idealistic economic system look like? It comes down to understanding class, power, and the average working man’s lack of agency. As Progressives, we sabotage our own agenda by not understanding how economics work. Steve describes our movement’s ignorance as a “self-inflicted gunshot wound to the junk,” and he tries to clear up some of the more common misunderstandings. He talks about the history of capitalism and how the system is now eating itself alive. When you pay interest rates, where does that money go? Is the middle class even a real thing? Steve attests that Modern Monetary Theory could contribute to fixing our society’s problems, but MMT can’t do it alone. How do we make our progressive goals actionable and not just theoretical? Why do progressives go to sleep whenever Democrats are in power rather than demanding real change?

Steve does a brilliant “Trumper” impression as he explains how we need to create working class awareness. We (as Progressives) need to accept that Medicare can’t work on a state-by-state level, and Steve calls out our dreams of a Universal Basic Income as being “batshit, bullshit crazy” (although there is still hope in the idea of Universal Basic Services). So, how do we solve our economic problems? Listen to learn about “outside the nine dots”, “creating dual power”, and how “education and awakenings are two different things.”

Other topics include: Giving Biden credit for the CHIPS Act, price gauging during the pandemic, Dude, Where’s My Car, and the economic theories of Clara E. Mattei and Jason Hickel.  

To understand more about how economics can realistically work to create a more equitable society, visit Steve Grumbine’s website: http://realprogressives.org

Listen to Steve’s podcast: https://macroncheese.captivate.fm