Senators Slam Democrats For Backing Experimental Modern Monetary Theory
Introduce Resolution Condemning MMT, Radical Policies That Threaten U.S. Economy
WASHINGTON, D.C. – U.S. Senators David Perdue (R-GA), Thom Tillis (R-NC), Jerry Moran (R-KS), Mike Braun (R-IN), and Joni Ernst (R-IA) are calling out Congressional Democrats for embracing the experimental Modern Monetary Theory (MMT) to pay for expensive policy proposals, such as the Green New Deal and socialized medicine. MMT states that the federal government can continue to spend without offsets and incur endless debt without serious consequences.
In response to Democrats floating the idea of implementing MMT to fund their policy proposals, the Senators are introducing a resolution to acknowledge the United States Senate’s responsibility to condemn MMT and recognize implementation would increase national debt, lead to higher inflation, and pose a clear danger to the economy.
“In an effort to pay for their radical Socialist policies, Democrats are actually embracing the idea that our $22 trillion national debt doesn’t matter,” said Senator Perdue, a member of the Senate Banking Committee. “Not only is Modern Monetary Theory questionable at best, it jeopardizes the United States’ economic security. Some in Washington still refuse to accept the fact that we are in a full-blown debt crisis. I never dreamed we would be debating socialism versus capitalism in America during my lifetime. Instead of wasting time on outrageous ‘spend-now, spend-later, spend-often’ policies, we should continue President Trump’s focus on implementing policies that will have a true impact on the nation’s debt, such as growing the economy.”
“As the radical left continues to push policy proposals that will explode our national debt, like the government take-over of health care and the Green New Deal, its embrace of Experimental Modern Monetary Theory and belief that the federal government can spend endless amounts of money without consequences will bring dangerous ramifications for American families,” said Senator Tillis, a member of the Senate Banking Committee. “One look at the current humanitarian crisis in Venezuela is proof that this Experimental Modern Monetary Theory does not work, and I will continue to work to reduce our out-of-control spending so future generations are not burdened with overwhelming debt.”
“The notion that the Federal Reserve can simply print more money to allow Congress to increase federal spending beyond our means is fundamentally flawed,” said Senator Moran, a member of the Senate Banking Committee. “We must work toward realistic solutions to curb our skyrocketing debt while continuing to build on the success of our strong economy. The Modern Monetary Theory does not provide a realistic path forward.”
Specifically, this resolution:
- Recognizes the Senate’s duty to condemn MMT and acknowledge its implementation would increase deficits, lead to higher inflation, and pose a clear danger to the economy.
- References testimonials from across the political spectrum condemning MMT, including former Secretary of the Treasury Lawrence Summers, Chair of the Board of Governors of the Federal Reserve Jerome Powell, Former Chair of the Board of Governors of the Federal Reserve Janet Yellen, and scholars from the American Enterprise Institute, the Mercatus Center, and the Cato Institute.
Click here for text of the resolution.
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