Irrational rejection of ''Modern Monetary Theory''.
Monetary theory (MMT) has shown how modern monetary systems actually work. It
has shown that governments that issue
their own currency, such as the US, can never run out of money or be forced to
default on debt issued in their own currency. It has also demonstrated that
government spending to stimulate the economy is logical and that the resulting
deficit is irrelevant - the government always has the monetary means to eliminate
it. This directly contradicts neoliberal doctrine that wants to limit
government spending and posits that deficits destabilize the economy.
Neoliberalism often constitutes a 'worldview' and 'personal identity'. Those
who hold such strong beliefs cannot be persuaded to abandon them using
rational arguments and facts - psychological reasons usually impede it as research
has shown. The worldwide dominance of the
doctrine, vested interests and psychologically grounded opposition suffocate
MMT and rational arguments showing its superiority are seemingly of no avail.