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Modern monetary theory says that the government can just solve problems by printing more money? Maybe it's ridiculous too in that case, since there are multiple examples of that being a terrible idea.
There are a lot of excellent examples of governments solving problems by printing money. Most notably, basically every case of hyperinflation ever has been solved by printing money. Noted economist Mark Blyth goes into this extensively in Austerity: The History of a Dangerous Idea.
What MMT posits is not that governments can freely print money with no consequences, but rather that we're looking at the question if printing versus borrowing versus taxation backwards.
The basic theory of inflation is that too much money chasing the same quantity of goods and services pushes up the prices of those goods and services in an effect rather like a bidding war.
What MMT points out is that from a government finance perspective, this implies that the chief concern is the amount of money in circulation. If money is removed from circulation, via taxation, that becomes a control on inflation. This allows a radical rethinking of government spending, since your chief concern is no longer the balance of the budget, it is only the balance of the economy.
This also gives you new tools with which to combat inflation. Right now, in contemporary liberal economics, the only control we have for inflation is interest rates, which disproportionately harm the least affluent. But by considering taxation as an inflation control we can shift the greatest burden of combating inflation onto the wealthiest instead.
Cory Doctorow gets into a really good and approachable explanation of this in one of his more recent articles, when pondering the question of whether it is beneficial or even possible to eliminate the national debt:
https://doctorow.medium.com/retiring-the-us-debt-would-retire-the-us-dollar-30f366e0bc40
I'm citing Doctorow here rather than academic sources because he's very good at explaining this stuff in comprehensible ways. For a more extensive breakdown The Deficit Myth by Stephanie Kelton is regarded as an excellent resource. Kelton, BTW, was formerly Chief Economist on The US Budgetary Committee; she absolutely knows her stuff when it comes to government level finance.
No idea why you deleted that comment. You're right.
The bank bailouts in 2008 didn't cause the tiniest bit of inflation. Again, Mark Blyth calls this out specifically in his book and many of his lectures. The predominant question plaguing economists in the 2010s was "Where the fuck is the inflation?"
Japan has an incredibly high debt to GDP ratio, and their main economic constraint right now is too little inflation.
Once you start looking for the examples they're there. This whole idea that government spending = inflation is a total myth.
Meant to post it below, so wrong comment, but it was sarcastic and incorrect intentionally. The US economy is not the same as a household economy, nor is it the same as the state or city economy. State and local governments have to stay balanced, unlike the federal government which prints money.
I think we are in agreement on this