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Article snippet: MORE’s 2020 spending proposal has drawn criticism from deficit hawks worried that it fails to balance the budget within a decade, but some Democrats are promoting a new economic theory that says deficits don’t really matter. The rationale, known as Modern Monetary Theory (MMT), argues that debt poses much less of a threat than previously thought. And while it remains far from the economic mainstream, the idea is gaining traction among left-wing Democrats proposing expensive policies like Medicare for All and the Green New Deal. Freshman Rep. MORE (I-Vt.). She says the conventional wisdom that deficits crowd out private investment, lead to higher interest rates and easily spur inflation is largely wrong. “What’s wrong with it is the very simple point that budget deficits augment private savings,” says Kelton, now an economics professor at Stony-Brook University. Whereas economists traditionally argue that a growing debt will weigh down an economy, Kelton says deficits put more money in people’s pockets, which in turn spurs growth. “When the government runs a budget deficit, it means they’re putting more money into the economy than they’re taking out,” she said. Most congressional Democrats, including Speaker MORE (N.Y.), adhere to conventional wisdom, arguing that fiscal responsibility is important. Pelosi angered some progressives earlier this year by insisting on including pay-as-you-go rules for the new Congress, while Lowey slammed Trump's 2020 budget request ... Link to the full article to read more