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The Deficit Myth

Modern Monetary Theory and How to Build a Better Economy

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The Deficit Myth

By: Stephanie Kelton
Narrated by: Stephanie Kelton
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About this listen

 'Game-changing ... Read it!' - Mariana Mazzucato

In a world of epic, overlapping crises, Stephanie Kelton is an indispensable source of moral clarity ... the truths that she teaches about money, debt, and deficits give us the tools we desperately need to build a safe future for all. Read it - then put it to use. - Naomi Klein

The leading thinker and most visible public advocate of modern monetary theory - the freshest and most important idea about economics in decades - delivers a radically different, bold, new understanding for how to build a just and prosperous society.

Any ambitious proposal - ranging from fixing crumbling infrastructure to Medicare for all or preventing the coming climate apocalypse - inevitably sparks questions: how can we afford it? How can we pay for it? Stephanie Kelton points out how misguided those questions really are by using the bold ideas of modern monetary theory (MMT), a fundamentally different approach to using our resources to maximize our potential as a society.

We've been thinking about government spending in the wrong ways, Kelton argues, on both sides of the political aisle. Everything that both liberal/progressives and conservatives believe about deficits and the role of money and government spending in the economy is wrong, especially the fear that deficits will endanger long-term prosperity.

Through illuminating insights about government debt, deficits, inflation, taxes, the financial system, and financial constraints on the federal budget, Kelton dramatically changes our understanding of how to best deal with important issues ranging from poverty and inequality to creating jobs and building infrastructure. Rather than asking the self-defeating question of how to pay for the crucial improvements our society needs, Kelton guides us to ask: which deficits actually matter? What is the best way to balance the risk of inflation against the benefits of a society that is more broadly prosperous, safer, cleaner, and secure?

With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT busts myths that prevent us from taking action because we can't get beyond the question of how to pay for it.


'The best book on rethinking economics that anyone will find right now.' - Richard Murphy, Political Economist and author of The Joy of Tax


(P)2020 Hachette Audio©2020 Stephanie Kelton Deficit Economics Theory Government Taxation Inspiring Thought-Provoking Economic Inequality Capitalism Economic Policy Banking Socialism Economic disparity US Economy Deflation Money Great Recession Mythology

Critic Reviews

Kelton is to modern monetary theory what Milton Friedman was to American conservatives for a half century - conversational, fierce, relentless.
Kelton's game-changing book on the myths around government deficits is both theoretically rigorous and empirically entertaining. It reminds us that money is not limited, only our imagination of what to do with it. After you read it you will never think of the public purse as a household economy again. Read it! (Mariana Mazzucato, author of The Value of Everything: Making and Taking in the Global Economy)
In a world of epic, overlapping crises, Stephanie Kelton is an indispensable source of moral clarity ... the truths that she teaches about money, debt, and deficits give us the tools we desperately need to build a safe future for all. Read it - then put it to use. (Naomi Klein)
The best book on rethinking economics that anyone will find right now.
In the wake of the financial impact of the coronavirus, she's having a moment ... she's become a rock star in her field. (Ben Hoyle)
Kelton is a razor-sharp writer ... smashing shibboleths of conventional economic wisdom.
This book is going to be influential. (Martin Wolf)
One of the most important and accessible books ever written about money
Kelton's book achieves a revolution in political economy.
A leading light in modern monetary theory.
[Kelton] has succeeded in instigating a round of heretical questioning, essential for a post-Covid-19 world, where the pantheon of economic gods will have to be reconfigured.
Convincingly overturns the conventional wisdom that federal budget deficits are somehow bad
The most talked about economics book of 2020
A remarkable book both in content and timing. A 'must read' that is sure to influence many aspects of policymaking going forward (Mohamed El-Erian, chief economic advisor at Allianz)
All stars
Most relevant
The concept of MMT is presented well in layman's terms, but without a good understanding of macro economics it is hard to validate or criticise the concept. I'm afraid that most people will read this and be swept up by the moralising without understanding exactly how and where this may or may not work.

I do have some concerns about the applicability of this concept to developing nations. Kelton pretends to address this with a short piece in one of the chapters, but Kelton's solution is squarely aimed at helping the US, not the billions of poor people not living there. In particular, I have some concerns about how the balance of trade (which will surely be strengthened by universal employment) can be weapon used to maintain existing US hegemony. On the other hand, if China and India employs this concept and raises their productive output proportional to their labour capacity, then the West has no chance to remain dominant global powers.

Being new the concept, I really like this as way to move towards Universal Basic Income, without jumping into it fully. However, I do believe that Kelton and others are overly idealistic about the complexity of managing a massive state-funded workforce. Having seen how hard it can be to manage performance (value addition) from some people who are "willing to work", I believe that this proposal will need to answer how to keep the state employed productive.

Unfortunately Kelton deviated from her economic message toward to the end to take her moral message of universal employment to other fields that she is not an expert in. This smacks of virtue signalling and is disingenuous from an economics stand-point. Recognising that we need to prioritise environmental concerns from an economic perspective is good. However, proposing solutions is not in her remit and pushing the renewable agenda is presumptuous.

Very interesting idea

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opened my eyes into seeing money and government spending in a brand new way. Amazing book. Highly recommended!!

Very thoughtfully written

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This is the easiest book on macroeconomics that you'll ever read. The book is empowering and gives you the information you need to imagine a better world.

Clear, concise, and wonderfully written.

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I would recommend everyone listens to this book. The ideas discussed impact on everyone. Stephanie patiently goes through the deficit myth in an incredibly accessible way. This will turn your understanding of how the government works on its head. It will both frustrate and inspire you. This is a knowledge everyone should have.

Easy, Informative, Important.

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Inspiring. Would be transformational if adopted. Lots of great analogies that make the concept understandable.

Come to New Zealand Stephanie and let's implement MMT here as a model. We already have some progressive thinking with a Treasury Living Standards Framework and Government Wellbeing budgets but their implementation is still constrained by conventional economic thinking. Fingers crossed the powers that be would be open minded enough to listen and scrutinise MMT.

We have MMP that has transformed our political system by giving everyone's vote a meaning. Let's introduce MMT for all the reasons you suggested in your outstanding final chapter.

Everyone should hear this

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