Stephanie Kelton: Have Nice Things
on Tuesday, August 1, 2023Meaning of Stephanie Kelton Money Quote: saying people believe that the national debt prevents us having nice things, but it may be the aversion to the label. Stephanie Kelton said:
“The debt isn’t the reason we can’t have nice things. Our broken thinking is. To fix our broken thinking, we need to overcome more than just an aversion to big numbers with the word debt attached” — Stephanie Kelton
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This quote from Stephanie Kelton suggests that concerns over rising national debt levels are not the actual barrier preventing governments from funding important social programs and investments. Some key points in interpreting her perspective:
- Kelton implies that objections to debt accumulation alone do not necessarily justify opposition to initiatives that could benefit citizens like universal healthcare, education, etc.
- She portrays debt aversion as an example of “broken thinking” that needs reform, arguing debt is a policy tool that should be evaluated based on prudent uses rather than size alone.
- Kelton’s perspective reflects Modern Monetary Theory views that question traditional taboos around public debt for a sovereign currency issuer.
- However, reasonable experts disagree on debt management and the economic effects of very high debt levels over the long run, seeing both risks and opportunities that merit open discussion and evidence-based debate on all sides of complex issues around fiscal responsibility and policy priorities.
Overall, Kelton aims to challenge conventional wisdom and encourage evaluating public debt pragmatically on a case-by-case basis rather than as an absolute restriction. But the best interpretation considers this perspective alongside other reasonable positions, as knowledgeable analysts and policymakers will continue debating optimal fiscal approaches in good faith based on changing economic conditions and priorities.