Summary of Stephanie Kelton's The Deficit Myth

By IRB Media

Get the Summary of Stephanie Kelton's The Deficit Myth in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country.

Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis.

• Language: English
• Publisher: IRB Media
• Release date: Dec 10, 2021
• ISBN: 9781669343721

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Stephanie Kelton's The Deficit Myth

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 1

#1

The government is not always the cause of the country’s fiscal problems. In many cases, it is the government itself that is causing the problem.

#2

The author has a difficult time believing that the solution to all of our country’s problems is to simply spend more money. While there are no financial constraints on the federal budget, there are real constraints in place, such as inflationary pressures and available productive resources.

#3

The government has the ability to print money, and spend it, which is what FDR did during the Great Depression, and what Obama did following the financial crisis of 2008.

#4

President Obama initially responded to the crisis by proposing a $1. 5 trillion stimulus plan. However, the $1. 5 trillion was quickly whittled down to $787 billion, which was passed by Congress.

#5

The first six chapters of the book dispel the myths about the US deficit and how it should be dealt with.

#6

The fourth myth is that deficits are bad for the economy because they crowd out private investment and undermine long-term growth. In reality, fiscal deficits actually increase private savings, and crowd-in private investment.

#7

The author will address six common myths about the US fiscal situation. These include the notion that the national deficit is a crisis, and that social security and Medicare are on the verge of going broke.

#8

The problem with the current economic system is that it is controlled by and for the rich, and it always has been.

#9

The next year will be extremely difficult for everyone, as the entire country will live in a state of anxiety until the virus is contained and a vaccine is developed.

Insights from Chapter 2