Framing modern monetary theory

MMT provides an accurate description of how the monetary system actually operates. It remains an accurate account of the macroeconomy regardless of whether the policy framework the economy supports is driven by an individualistic or a collectivist value system. Responsible economic management does not entail a commitment to an orthodox economic model, or to a positive or negative figure in a budget. The decision to pursue a policy framework consistent with Model 1 or Model 2 is purely ideological. Orthodox economic rhetoric associated with Model 1, trades on an incomplete understanding of macroeconomic realities and exploits powerful metaphors to ensure that these realities and related policy opportunities are obscured from vision. When this economic reality is understood and framed in an accessible way, it is anticipated that decisions to cut spending on welfare, and other public goods care will be seen not as responsible economic management, but ideologically motivated decisions that deprive our children of a future, and rob the most vulnerable members of our society of the opportunity to thrive.