Friday, April 8, 2011
The US Needs A Fifth Budget Proposal
In The People's Budget, Jeffrey Sachs, Director of The Earth Institute, Quetelet Professor of Sustainable Development, and Professor of Health Policy and Management at Columbia University, as well as Special Advisor to United Nations Secretary-General Ban Ki-moon, outlines the four budget approaches that are now on the table. From the the MMT perspective they all fail because they do not understand sectoral balances and think that balancing the budget is a good idea. It's not only a wrong idea, it is a crazy idea in this economic environment. If any of these ideas are enacted, depression here we come. With all those credentials, I'm surprised that Prof. Sachs would miss this. His heart is in the right place, but his analysis isn't.