NBA's Spencer Dinwiddie Has An Impressive Grasp Of Economics
Brooklyn Nets guard Spencer Dinwiddie is the latest NBA player to contract the coronavirus, a development that could prevent him from participating the NBA season restart. But if he ever needs a backup plan to professional basketball, he should head to Wall Street.
What started out as an explanation why he would choose to put the word "trillion" on the back of his jersey if allowed to place a social issue in lieu of his name turned into a master class in global fiscal responsibility.
Dinwiddie starts out by saying the word "trillion" is in relation to the current $26 trillion national debt. With everything happening in the world today, I find it fascinating that the social of issue of choice of at least one NBA player is global fiscal policy.
After his intro, he jumps into a mention of Modern Monetary Theory in the 3rd tweet, an acronym that I imagine few outside of Wall Street would know. By the 4th tweet, he brings up the #1 complaint about the Fed and the government in general - there's no real incentive to budget or be fiscally responsible because can simply print more money whenever it needs.
Dinwiddie again lays out the biggest problem with the Fed. It's true that the Fed is supposed to be independent from the three branches of government, but he also gets that the Fed holds the cards. Indeed, why tax people if you can just print money? The answer is that the dollar would become essentially worthless and inflation would skyrocket if consumers know that there's no end to the free money. But he also understands that the dollar holds an extra degree of power as the world's reserve currency.
Dinwiddie then brings his point home by identifying hyperinflation as the key result before raising the more important social injustice issues.
I'm not sure I've come across a profession athlete with such a grasp of monetary policy, the Fed, inflation and money supply. It's a level of comprehension you find from few people in general, let alone professional sports.
Well done, Mr. Dinwiddie!