Illustration: Lazaro Gamio/Axios

Is the deficit too small? A growing consensus is forming that the answer might be yes — despite the fact that it hit an all-time high in February.

What's happening: Warren Buffett has learned to stop worrying about the deficit, as have many economists on both sides of the political spectrum.

What we're reading: The NYT's Patricia Cohen reports on how a long list of Wall Street heavyweights is embracing Modern Monetary Theory, or MMT. Quoted in her article: Jan Hatzius, chief economist at Goldman Sachs; Paul McCulley, former chief economist at Pimco; Mohamed El-Erian, former Pimco CEO; Ray Dalio, founder of Bridgewater Associates; Richard C. Koo, chief economist at Nomura; and Dan Alpert, managing partner at Westwood Capital.

While none of the Wall Streeters can be considered doctrinaire adherents of MMT, they all find it useful in terms of understanding the point at which government spending stops being a productive investment in the economy and starts risking harmful levels of inflation. None of them think we're anywhere near that point today.

  • Their message: For the time being, the government should keep on spending, even it doesn't raise taxes. The economy — and the market — will only benefit as a result.
"For me an economic approach must help me understand the world, and provide me with some useful insights (preferably about my day job — investing). On those measures let me assure you that MMT thrashes neoclassical economics, hands down."
James Montier, strategist at GMO

Go deeper

Updated 16 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging — Pence no longer expected to attend Barrett confirmation vote after COVID exposure.
  2. Health: 13 states set single-day case records last week
  3. Business: Where stimulus is needed most.
  4. Education: The dangerous instability of school re-openings.
  5. States: Nearly two dozen Minnesota COVID cases traced to 3 Trump campaign events
  6. World: Restrictions grow across Europe.
  7. Media: Fox News president and several hosts advised to quarantine.

Republicans and Dems react to Coney Barrett's Supreme Court confirmation

President Trump stands with Judge Amy Coney Barrett after she took the constitutional oath to serve as a Supreme Court justice during a White House ceremony Monday night .Photo: Tasos Katopodis/Getty Images)

President Trump said Judge Amy Coney Barrett's Senate confirmation to the Supreme Court and her subsequent taking of the constitutional oath Monday was a "momentous day," as she she vowed to serve "without any fear or favour."

  • But as Republicans applauded the third conservative justice in four years, many Democrats including Speaker Nancy Pelosi (Calif.) warned of consequences to the rush to replace the late Justice Ruth Bader Ginsburg ahead of the Nov. 3 election, with progressives leading calls to expand the court.
Ina Fried, author of Login
58 mins ago - Science

CRISPR pioneer: "Science is on the ballot" in 2020

Photo: "Axios on HBO"

In her three decades in science, Jennifer Doudna said she has seen a gradual erosion of trust in the profession, but the recent Nobel Prize winner told "Axios on HBO" that the institution itself has been under assault from the current administration.

  • "I think science is on the ballot," Doudna said in the interview.

Why it matters: That has manifested itself in everything from how the federal government approaches climate change to the pandemic.