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Warren Mosler
Photo: ModernMoneyNetwork, CC BY-SA 3.0, via Wikimedia Commons11

Warren Mosler

American economist (born 1949)

Warren Mosler (born September 18, 1949) is an American hedge fund executive, financier, and politician. He is a co-founder of the Center for Full Employment And Price Stability at University of Missouri-Kansas City and the founder of Mosler Automotive.2

From Wikipedia’s article on Warren Mosler (this version), CC BY-SA 4.0.

Born Sep 18, 1949.1

About

Mosler is a proponent and research financier of Modern Monetary Theory. He was awarded an honorary doctorate by the Franklin University Switzerland, and in 2014 was appointed visiting professor at the University of Bergamo, Italy.

Mosler has run as an independent for multiple offices including: United States president, a delegate to Congress three times, and lieutenant governor. In 2018, he ran unsuccessfully for governor of the U.S. Virgin Islands as an independent.

From Wikipedia’s article on Warren Mosler, shared under CC BY-SA 4.0.2

Companies

Early life and education

  • Date not recordedUniversity of Connecticut3

Early life

Mosler attended the University of Connecticut where he graduated with a degree in economics.

He initially went on to work at the Savings Bank of Manchester in Manchester, Connecticut in 1973. Next he went on to work in Hartford for Bache and Co. before moving to New York City. From there he would go on to work on Wall Street, specifically, Bankers Trust NYC, and then William Blair in Chicago.

Academic work

Mosler met economist Arthur Laffer through a referral from Donald Rumsfeld. At a meeting of Social Policy in NYC, William Vickrey suggested Mosler to seek out post-Keynesian economists L. Randall Wray, Bill Mitchell, and Stephanie Kelton to discuss his ideas. These post-Keynesian economists had been familiar with chartalism, and agreed with Mosler's analysis. Laffer's staff economist Mark McNary provided editorial and research assistance in Mosler's self-published monograph, "Soft-Currency Economics".

Academically, he is known for his writings on Modern Monetary Theory, an economic theory that describes the way fiat money is created and used in modern economies. His unorthodox views have gained a substantial following among participants in informal internet discussion groups and academics.

In 2010 he published Seven Deadly Innocent Frauds of Economic Policy outlining errors that can be made in the development of policy and explains what he deems "true" as proper alternatives.

In recognition that his "leadership in the field of economics is notable" Mosler was awarded an honorary doctorate from Franklin University Switzerland in 2014, after the Mosler Economic Policy Center (a center founded by him and aimed at encouraging education and research in new concepts and methods of economic policy analysis) had promoted a lecture about functional finance at Franklin the year before.

In 2014 he became visiting professor at the University of Bergamo.

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Mosler's law

He is attributed with creating Mosler's law dealing with fiscal policy of a nation during a recession. Specifically, Mosler's law states that "[...] no financial crisis [is] so deep that a sufficiently large fiscal adjustment cannot deal with it." He stated that the recent recession could have been alleviated much quicker from a full payroll tax holiday that suspended FICA taxes (or massive government spending increases, depending on one's politics) until unemployment fell. He opposes overly high taxes since they discourage consumption within an economy but does agree a certain tax level is needed to guarantee citizens use the dollar as a currency. He is confident that inflation is a non-factor in his analysis given current procurement policy as long as there is sufficient excess capacity. In his theory the government has the complete ability to constantly expand net spending and guarantee consumption and growth. He supports unlimited FDIC deposit insurance for all bank deposits for US banks.

He stresses that federal spending is in no way constrained by tax revenues, therefore the government will always be able to make payments in its own currency, stating "Federal Government checks don't bounce". He goes on to state that any and all debt passed on to future generations will never be burdensome, since they will undoubtedly consume whatever is produced.

He developed much of his belief from his time as a hedge fund manager when many investors predicted the Italian government defaulting on bonds, whereas he predicted, correctly, that Italian government would not default and thus made considerable returns.

Economic views

Energy

In a brief proposal, Mosler stated the energy crisis could be solved by lowering the speed limit nationally to 30 mph. According to Mosler, this would cut gasoline consumption and pollution since automobiles run more efficiently at slower speeds, while also greatly increase the demand for public transportation. He states that such an initiative would eventually lead to a supply shock forcing prices down, and improve real terms of trade.

Housing

Mosler supports government purchases of houses in the foreclosure process from the bank at the lower of the fair market value or remaining mortgage balance. The government then would rent the house back to the original owner and after two years the house is put on the market with the original owner having the first rights of purchase.

Taxes

Mosler supports eliminating the income tax and replacing it with a real estate tax to "anchor the currency". He also supports eliminating tax advantages for any savings accounts, since he states savings do not increase investments necessarily. He supports luxury taxes being used to limit the consumption of undesirable goods.

From Wikipedia’s article on Warren Mosler (this version), CC BY-SA 4.0.

Career

Occupation: economist, politician, entrepreneur.6

  • Date not recordedWorked at University of Missouri–Kansas City4
  • Date not recordedFounded Mosler Automotive5

In 1982 he founded a hedge fund, Illinois Income Investors, where he was responsible for several strategies utilizing government securities, mortgage backed securities, LIBOR swaps and LIBOR caps, and financial futures markets. By the late 1990s, most of the firm had been largely turned over to his partners, as he had disagreements on the direction of some of its investments.

Mosler's hedge fund was informed by his developing theories. After his departure at the end of 1997, Mosler's former business lost money when several dealers refused to make payments on credit default swaps on Russian debt. Separately, Mosler's attributed the crisis to the fixed exchange rate Russia had at the time.

From Wikipedia’s article on Warren Mosler (this version), CC BY-SA 4.0.

Personal life

  • BornSep 18, 1949, Manchester7
  • CitizenshipUnited States8
  • ResidenceSaint Croix9

Healthcare

Mosler supports government funding for full-time employment with full health care coverage for employees and dependents, thus triggering all firms providing health care to remain competitive. He states health cannot be viewed as a production cost, therefore the government should fund for at least 90% of the cost paid by the firms. Finally, he supports issuing medical debit cards to all citizens, for a fixed amount. This covers any medical costs and any amount above this will be covered by "catastrophe insurance". At the end of every year, citizens would receive a portion of their unused medical debit card.

Around 2010, Mosler relocated to the U.S. Virgin Islands in order to participate in a government-sponsored economic growth initiative. In 2013, the New York Times described Warren as "transitioning into an active retirement". Warren currently lives full time in St. Croix in the U.S. Virgin Islands.

From Wikipedia’s article on Warren Mosler (this version), CC BY-SA 4.0.

Politics

In February 2009, Mosler declared his candidacy with the Federal Elections Commission to run for the office of President of the United States as an independent. In April 2010, he withdrew to run for a U.S. Senate seat in Connecticut, briefly as a Democrat, but ultimately as an independent. In the final tally he received 0.98% of the vote.

Mosler has run unsuccessfully three times for U.S. Virgin Islands delegate to the United States Congress; his last congressional race was in 2012.

In 2014, Mosler ran for lieutenant governor of the U.S. Virgin Islands as an independent, but quit the race early due to a difference of opinion with his running mate Soraya Diase Coffelt. In 2018, he ran unsuccessfully for governor of the US Virgin Islands as an independent candidate, coming in fourth with 4.7% of the vote.

From Wikipedia’s article on Warren Mosler (this version), CC BY-SA 4.0.

Sources

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