Professor Stephanie Kelton (Stony Brook University) on the Jimmy Dore Show discussing Modern Monetary Theory, and what Alan Greenspan had to say about Social Security.

While the "common wisdom" is that Social Security is slowly running out of money, the truth is that isn't true at all: the US Government cannot run out of US dollars. It is always able to make payments in dollars, and if it promised dollars to future Social Security recipients, then it can always make good on that promise.

The more important question is, will there be real goods and services for those dollars to buy? As Baby Boomers move into retirement, there will be fewer workers in the US workforce, but US consumers will still be buying just as much stuff. If our economy can't produce that stuff (the food, clothes, cars, homes, electronics, appliances, energy, etc), then competition for scarce goods will drive up prices, and we'll get inflation.

So the real dilemma for Social Security is not "where will the money come from." The problem is, how do make sure that our economy is productive enough to sustain Social Security without causing inflation?

Watch the whole video here:    • What Is MMT And How It Works w/Stepha...  

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