Green Sovereign Money vs MMT

Recently MMT (Modern Monetary Theory) proponent and member of the Green Party of Washington, Derrick Miles, posted an article inviting us to join him in an exploration into the differences between MMT and Green Party of the United States monetary policy. We wholeheartedly agree that “realizing where our money actually comes from is paramount to administering the Green Party’s progressive agendas.” We on the Banking and Monetary Reform Committee (BMRC) of GPUS are happy to explore the differences because it is a question we have often been asked, and this article provides a welcome opportunity to make the distinctions clear.

The basic difference between Greening the Dollar and MMT is this: Greens are proposing that we change the existing monetary system to a sovereign money system and MMT claims we already have a sovereign money system, so it does not need to change.

Thus, regarding the relationship between the Green Party and MMT, it seems that we agree a sovereign money system is the best way we can address funding solutions to the convergence of catastrophes coming down on us all. The question then is, what is a sovereign money system and do we have one?

History tells us we have never had a sovereign money system in this country. Jefferson proposed sovereign money, but Hamilton convinced Congress to give the monetary authority to a private bank instead and that remains true today. Despite the revolution having been funded by sovereign money issued by the Continental Congress, and except for nearly a half billion in debt-free Greenbacks (sovereign money) being issued during the Civil War, a permanent sovereign money system has eluded the U.S. throughout our history. Consider, too, what hundreds of economists from around the world recommended to end the Great Depression, The Chicago Plan which became the 1939 Program for Monetary Reform. This is what the NEED Act HR 2990 introduced in 2011 by Dennis Kucinich is based on. Even before that, in the late 19th century, our money system was recognized as a serious problem requiring change. Numerous political parties had it at the very top of their platforms. The Green Party supports a National Monetary Commission of Inquiry to explore alternatives to this unjust and archaic system.