So much for MMt(at least the way that certain people perceived MMT to be)

We are about to pay for 12 years of easy money policies.

The crux of MMT is the idea that spending creates money and taxing destroys money, so deficits are made up and only inflation matters. Doesn’t seem like a “so much for” moment for MMT, which also predicts this if there’s too much money in the economy. The real question is whether there’s political appetite for the MMT-prescribed treatment here, which is to significantly raise taxes. I’m guessing no.

Why would taxation "destroy money" in times of endless deficits? All that taxed money, and much more on top, is spent before it's even received.

The government has a money source and a money sink, and the idea that input and output must balance is an anachronism dating to days of physical currency. Under MMT, the government spends the amount it needs to spend to fulfill its obligations, and taxes the amount it needs to tax to prevent inflation. Under this model the purpose of taxation is not to collect money so that it can be spent (since government spending comes from the money source), but rather to collect money so that it can be destroyed by feeding it into the government's money sink. In a growing economy with a growing population it's implausible that balancing inflow and outflow would be ideal, since over long time scales that would result in the number of dollars per person and per unit of economic activity to decrease, leading to deflation.

The essence of MMT as I understand it is that money is made up so the government should spent as much as necessary for infrastructure, essentially creating money, and in order to cut off inflation it should tax money and just... do nothing with it, just destroy it.

I know that MMT is very hated but it seems very compelling.