Modern Monetary Theory Brings Order to Republican Chaos

I think we can all agree that America has been in unprecedented chaos since Donald Trump entered politics. There are massive failures in the general political and economic systems, and only now, after the damage is done, are people finally talking about what should be done to settle things down. The so-called "one big beautiful bill act" (OBBBA), passed in 2025, sits at the center of the sabotage discussion and what should be done to facilitate system equilibrium in response. The OBBBA is a nightmare, giving unfettered tax cuts for those who already control 80-90% of the wealth. At least 42 million citizens (representing 1/8 of the U.S. population) have lost access to need-based assistance, including medical insurance and health care services. The proponents of the big ugly bill, a more accurate name, claim almost exclusively that they, who are Republicans, understand (demonstrating a lack of knowledge of monetary policy and ineptitude in the topic) that their budget cuts or forced austerity will place America on a more "sustainable economic footing." IT IS SIMPLY FALSE, and I will explain why.

To understand Modern Monetary Theory, it should be read in tandem with and in the context of the system dynamics highlighted in Order Out of Chaos: Man's New Dialogue with Nature by Ilya Prigogine & Isabelle Stengers. Where does "money" come from? Money, or currency, is the energy input required for any system to stay stable. Currency is converted "energy" based on what it buys or invests those public funds in. Stability of a system is measured in terms of outputs and outcomes. Currency has value only to the degree it is circulated wisely throughout the system. Governments are the engine of the economy. How and where the $$$$, which is energy, is allocated determines the fate of an entire sector of the economic system, down to the individual household. Failure of a government to act with the entire economy in mind creates stagflation (what we have now).

Inflation can be thought of in terms of scarcity or the concern over scarcity (on the supply side - how much of something is available). It can also be thought of as too much wealth or energy, which is concentrated in too few hands. There isn't enough money circulating in the economic system, to keep the system from imploding inward and destroying itself. It causes the appearance of scarcity, and governments respond by printing more money to counterbalance the inequalities. This concentration of wealth also causes inflation.

Entropy is a concept in physics. It is a measurement of disorder and the tendency for systems to run down and lose energy. Entropy creates chaos. Experts have vacillated between the irreversibility of the process and the possibility of a process that can, under the proper set of circumstances, correct itself (Prigogine & Stengers, Order Out of Chaos Man's New Dialogue with Nature, 258 (2017) There is no system that is entirely closed that offers us to add only what we want and anticipate a system's response based only on what is intentionally added. Given the limitations of our knowledge and the openness of most systems to other influences, we can't know or anticipate, when governments KNOW the needs of the citizens or residents, many are going without the lack of government response should be considered sabotage.

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Other examples of Entropy in Politics, include:

The Former Soviet Union - decades of centralization eroded efficiency and legitimacy as the system unraveled.

Weimar Germany - democratic norms weakened under economic and political pressure, to allow authoritarianism.

Recent fragile states (Somalia, Ukraine and Palestine) - where disorder is created to fill a void that would otherwise exist but for the political and economic disorder used as a type of punishment.

All of these examples of entropy and instability are observed in the United States today.

Governments can run deficits but when the government's deficits are being paid by fewer people who are unable to compete or participate in the economy, it doesn't work. It causes a deficiency that destabilizes the system. Tax cuts to benefit the few, compounded by budget cuts for EVERYONE ELSE causes insufficient energy to circulate in the system. The bulk of the energy or currency must come from the U.S. government or the economic system collapses. Ignoring the problems and basic needs of the citizens is not acting like a government. It is done to cater to the billionaires who started the hype and anti-tax rhetoric in the first place. But many Americans are losing their nest eggs, access and participation in the economic system. It matters how the government money is being spent, and it matters who controls the surplus. Americans deserve BETTER.

https://www.youtube.com/watch?v=FATQ0Yf0Fhc

Systems require "energy" inputs for stability as measured by outcomes and outputs. Governments drive the economy and function as the "energy," not the billionaires. In fact, wealth is created and circulated by the engine - a government. When governments don't spend or allocate money where it is MOST needed or in ways that is unresponsive to various economic sectors and conditions, economic stagflation results. Stagflation is defined as slow growth (or no growth), high unemployment (no or low job creation) and high inflation.