This is a great post. The Chicago Booth survey questions were indeed in bad beliefs. The analogy between fiat money and corporate stock is very useful. It is thought by me would be useful for a few MMT economists to touch upon that declaration. It seems if you ask me that the main thing would be that the project has a positive NPV to the Federal government, not to society all together just.
That is, the task must raise the path of expected real surpluses in order to avoid inflation. Imagine a national government that has continuous real expenditures and that imposes only a lump-sum tax. This government attempts to issue new nominal liabilities to finance a project that will boost GDP by 1 percent.
Since the path of surpluses is unaffected, this policy would create inflation and increase no real income — even although the project is socially productive. Imagine that the same situation Now, except taxes are proportional to GDP rather than a lump sum. The project raises tax revenue by raising GDP Now, and to at least some extent this would offset the inflationary impact. Would MMT economists agree with what I had written about both hypotheticals just?
To avoid complication, let’s just assume that people have 100% possessions of a business. This viewpoint can be easily expanded to one who has partial ownership of the business enterprise through buying its stocks in the market. As 100% owners of the profitable business, we employ officers to add …