Mazzei Minute: 06/10/22
We now know that the Secretary of the U.S. Treasury, Janet Yellen, led a failure of expertise and policy at the White House. She recently admitted in an interview with CNN, “I think I was wrong then about the path that inflation would take.”
You think?! Liberal economists like Yellen who, at this time last year, were embracing the fad of Modern Monetary Theory have lost the argument again to the Milton Friedman school of economic philosophy.
Yellen and President Joe Biden dove headfirst into the foolish claims of Modern Monetary Theory that low-interest rates could indefinitely finance any amount of government spending. Biden foolishly declared in an April 2020 interview that “Milton Friedman isn’t running the show anymore.”
Well, Milton is laughing from his economic classroom in Heaven and seething that Americans now must put up with $5 dollar gasoline, expensive groceries, and a baby formula shortage. Biden and his liberal progressives, who just can’t learn from history, would have made the economy even worse with their proposed $5 Trillion in new spending for the Build Back Better Plan.
If Secretary Yellen wants to subdue inflation and heal the economy, then she better publicly debunk Modern Monetary Theory and ask successful economic students of Friedman for help.