Open letter to Pelosi on "Pay-go"
Honorable Madam Speaker Pelosi,
The facts have led us to the conclusion that your chamber should target inflation rather than budget balance outcomes. Obama proved that deficits do not cause interest rates to rise or inflation and that the govt cannot run out of US dollars as it is the monopolist supplier of them. Trump has only added confirmation of these facts. There is no intellectual or factual basis for “pay-go” rules, and it is dangerous to operate your chamber’s “power of the purse” based on unfounded fears and myths steeped in ignorance. The times, as you say, have found us and demand the partnership of a progressive citizenry and progressive government to make a new the promise of America as you lead us out of the dark age of Trump. Please reconsider your pledge to knee-cap the next Democratic President with mindless austerity conditions via “pay-go.” Instead, direct your chamber to have legislation scored for inflation and make fiscal adjustments as is appropriate for public purpose.
Sincerely
MMT Democrats