Thursday, September 29, 2016

Simon Wren-Lewis — Why was austerity once so popular?

A pretty good one. It argues indirectly for the need to educate voters that the currency issuer is the mirror image of the currency users, so their accounting statements are complementary rather than similar. Government deficits are non-government income and government debt is non-government net financial wealth in aggregate.

Mainly Macro
Why was austerity once so popular?
Simon Wren-Lewis | Professor of Economics, Oxford University

1 comment:

Kaivey said...

Polly Toynbee once wrote in the Guardian that the right have won the argument on economics but they were wrong about social issues.

Right wing economics was all about how running a country was similar to running a household, and that we couldn't live beyond our means.

I hated rightwing economics but even I had some trouble arguing against it sometimes, after all, I always ensured that I got the best deal when I bought anything, so why can't governments do the same.

But wealth does not come from the lowest price, but from a collective system and our technology. People need to earn the wages to access the collective system, so we need an economic system that suites the majority of us, not just a few.

The right have lost the argument about economics and hopefully the public will learn that running a country on the household economic's principle is disastrous.