Arguing that big #deficits are beneficial, as Modern Monetary Theory (#MMT) suggests, overlooks the #risks of inflating asset bubbles.
Large #GovermentDeficits can fuel excessive government spending, leading to artificial demand and unsustainable economic growth.
This can create speculative #bubbles, as cheap money chases assets, inflating their prices.
When these #bubbles #burst, the economic fallout can be severe, leading to recessions or financial crises.
Thus, viewing deficits as inherently bullish ignores the long-term risks of economic instability.
nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a what do you think?