Another proof of MMT. This is a plot of gross national wealth on the x axis plotted vs. the same quantity in the same year minus govt deficit minus External balance. The years start at 1960 and end at 2011.The plot combines BEA Section S A007 S.7 a Federal Govt and A003 S.3 .a. Households and Nonprofit Institutions Serving Households. (FL152090005 minus FL312090095 minus FL262090095) is the value along the y axis which agrees with the household net worth FL152090005. Each (deficit plus net export) adds to peoples’ wealth. The dollars are current values not adjusted for inflation.
Another way of thinking about the plot is as a plot of actual wealth on the x axis compared to the predicted wealth calculated using the MMT equations of balance which is also used by
The xl files were downloaded from the above website.
(Federal Deficits = Net Private Savings+ net imports), applies to USA and other nations that have their own currencies. Both federal deficits and net exports add to private savings.