The “we owe it to ourselves” MMT nonsense failed in Japan and Venezuela. Brazil is an excellent case to watch.
Modern Monetary Theory (MMT) proposes that government spending and deficits do not matter because the government can always print more money.
Anyone who has studied or lived through hyperinflation knows the theory is ridiculous at best, yet it prevails. Venezuela is in hyperinflation right now, but the MMTers reject that as corruption.
Japan remains mired in slow growth after wasting trillions of dollars, but at least Japan has not wrecked its currency, yet.
Brazil may be a better test case, because its government has done just what many of the MMTers want, pass out free money with no tax revenues to pay for it.
Pensions take 43% of Brazilian government revenues and MMTers tend to believe in absurd constructs like living wages.
I side with a Wall Street Journal report that states Dire Consequences in Brazil.