Macro N Cheese

Modern Monetary Theory explains how sovereign currency systems work, but it doesn’t tell us who controls the state or whose interests state power serves. Economist Bill Mitchell suggests that a dialectical understanding of capitalism is essential for answering that question.He and Steve discuss MMT not as a policy prescription but as a lens to dissect the capitalist state, not a neutral arbiter but an instrument of class conflict. Bill traces the motion of capital from the post-WWII "Golden Age," which was a temporary compromise forced by a strong working class. He takes us through what he calls the neoliberal counter-revolution, epitomized by the Powell Memorandum, wherein capital consciously exercised control to reverse social gains and redistribute income upward.The government’s “fiscal crisis” is an ideological fiction (a fetish of money) that obscures the material reality: a currency-issuing government faces no inherent financial constraint, only real resource limits.From the erosion of labor power and t