Friday, June 21, 2013

Dean Baker — The Bigger Problem With Mankiw's Plan to Give Everything to the One Percent


No, Professor Mankiw, it wasn't "the market."

CEPR
The Bigger Problem With Mankiw's Plan to Give Everything to the One Percent
Dean Baker | Co-Director

This article just skims the surface of the interaction of different part of the economy in creating wealth, non-financial and financial. In a modern economy, government co-ordinate R&D for dual military and domestic use of technological innovation, and private industry is the major beneficiary of wealth thereby created without bearing any of the cost or being required to contribute from profits beyond ordinary taxation. The Internet began as a military project, for instance, as did the interstate highway system that replaced rail as the principle form of transportation, with enormous implications for industry and commerce.

Examples like this abound. The hand of government is is everything, if only based on the public education that trains the workforce as the foundation of economic society. The notion that entrepreneurs are entirely responsible for their success and should therefore be rewarded as such in nonsense.

3 comments:

F. Beard said...

What? Not one mention of the greatest contribution government makes to business - backing for the banks?

The banking cartel must be high on Satan's "Protect at all costs" list, eh?

Matt Franko said...

What about the backing of GM?

The backing of senior citizens thru Social Security?

The backing of healthcare thru Medicare?

rsp,

F. Beard said...

What about the backing of GM? Matt F.

It's government backing of the credit cartel that causes a nationwide, synchronized boom-bust cycle. Money should be spent, not lent, into existence so that deflation is not built-in. Or do you agree with the Austrians that deflation is necessary to purge the "malinvestments?"

The backing of senior citizens thru Social Security? Matt F.

This is good, if they need it. And due to government backing of the counterfeiting cartel very many need it.

The backing of healthcare thru Medicare? Matt F.

Socialism for the rich creates the need for socialism for the non-rich.