Conspiracy theories about the deep state and Japan’s Ministry of Finance cult can be seen as proxy wars between economic schools

 

Conspiracy theories about the deep state and Japan’s Ministry of Finance cult can be seen as proxy wars between economic schools. Let’s frame them as critiques of bureaucracy. In the U.S., the deep state is often associated with a distorted Keynesianism, targeted by Austrian economists and MMT theorists. In Japan, the obsession with primary balance plays a similar role, upheld by bureaucrats as fiscal dogma. The main opposition comes from MMT, which emphasizes sovereign currency issuance and rejects fiscal constraint as ideology.

On taxation, the dominant view justifies hikes in the name of fiscal health. MMT sees taxes as tools for inflation control, not revenue. The Austrian school advocates for minimal taxation and limited government. On currency, the mainstream fears debt and inflation. MMT supports unrestricted issuance for public needs. Austrians distrust credit expansion and call for hard monetary limits.

For stimulus, the dominant position wavers between spending and fiscal balance. MMT prioritizes full employment through active spending. Austrians view recessions as natural corrections and oppose intervention. On market control, mainstream theory justifies intervention for stability. MMT supports public sector roles and jobs. Austrians demand free markets without state interference.

In both cases, these conspiracy theories express a deep distrust of bureaucratic control. Behind official policies lies a clash of economic worldviews—each shaping how nations are governed.