A recent viral video receiving millions of views online explains why millions of American families continue to struggle with “Bidenflation.” Well, perhaps “explain” is too strong a term.
In the video, an excerpt from the new leftist documentary Finding the Money, Jared Bernstein, chairman of the White House Council of Economic Advisers, discusses modern monetary theory—the idea that the federal government could eliminate the national debt simply by printing money. To say Bernstein’s musings on the topic lack coherence is an understatement:
This is absolutely insane…
This is Jared Bernstein. Chair of the Council of Economic Advisers.
He advises Biden on economic policy.pic.twitter.com/Gi2j99dn5d
— Geiger Capital (@Geiger_Capital) May 3, 2024
Anyone who feels more confident about “Bidenomics” after watching this video probably should get his head examined.
Who Prints the Money?
The problems with modern monetary theory, and Bernstein’s comments about it, starts with his assertion that “government prints the money.” It’s a true enough statement, but could benefit from some unpacking.
Most people don’t spend time reading the notes in their wallet or purse, but the Federal Reserve Board issues American currency. The Treasury Department, via the Bureau of Engraving and Printing, creates the currency, but the Fed actually issues it, after paying the Treasury for the cost of production. This system explains why the words “Federal Reserve Note” appear at the top of paper currency in circulation.
Independent Monetary Policy
For more than a century, since the 1913 enactment of the Federal Reserve Act, the Fed has conducted monetary
