Here, he describes why Austrian economics - or any economic system that won't allow the government to do deficit spend - can't work. If you only rely totally on the private sector to create all of the money supply, then society is always in debt to the banks and real savings are difficult to accumulate. Steve Keen then says people will get into ponzi schemes speculating on house price rises from which we get boom and bust.
He says his economic ideas are similar to MMT , but he concentrates more on private bank created debt, while MMT concentrates more on government deficit spending.
Steve Keen, economist, Professor at Kingston University London, and author of several books including "Debunking Economics" and most recently "Can We Avoid Another Financial Crisis?" joins David to discuss the failings of economics as it is usually taught, and the effect of teaching bad economics on policy in the real world
4 comments:
“If you only rely totally on the private sector to create all of the money supply, then society is always in debt to the banks and real savings are difficult to accumulate. Steve Keen then says people will get into ponzi schemes speculating on house price rises from which we get boom and bust.”
One of the purposes of gratuitous austerity is to force the masses to rely on loans for money, instead of using government-created money. For example, education should be paid for by the U.S. government, but bankers pay politicians to prevent this, so that students are forced to get loans from bankers.
Gratuitous austerity enriches the bankers while reducing the masses to debt slaves. It also fuels housing speculation, while increasing the numbers of homeless people.
All this is basic neoliberalism, and it’s destroying the USA.
One of the purposes of gratuitous austerity is to force the masses to rely on loans for money, instead of using government-created money. konrad
Except for physical fiat, coins and bills, the non-bank private sector may not even use government-created money (fiat) but must instead use private bank deposits.
This is THE fundamental dereliction of duty by a monetary sovereign - that its citizens MAY NOT use fiat in convenient, inherently risk-free account form at the Central Bank (or National Treasury) itself.
One might hope for the abolition of physical fiat, i.e. coins and bills, just to make it absolutely clear how enslaved citizens are to what is, in essence, a government-privileged usury cartel extending the public's credit but for the private gain of the banks, etc. themselves and of the rich, the most so-called "credit worthy."
Links on Steve Keen’s ‘The Many Problems of Economics’
The problem of economics is that economists are scientifically incompetent. Economics is a failed science and this includes Orthodoxy, Heterodoxy, Pluralism and Steve Keen himself.
Stop beating mainstream economics ― it is long dead
https://axecorg.blogspot.de/2018/04/stop-beating-mainstream-economics-it-is.html
Economics: 200+ years of scientific incompetence and fraud
http://axecorg.blogspot.de/2017/06/economics-200-years-of-scientific.html
Heterodoxy and Pluralism, too, is proto-scientific junk
http://axecorg.blogspot.de/2017/11/heterodoxy-and-pluralism-too-is-proto.html
MMT = Modern Monetary Trash
https://axecorg.blogspot.com/2018/09/mmt-modern-monetary-trash.html
How the Intelligent Non-Economist Can Refute Every Economist Hands Down
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705395
Where advanced Heterodoxy — represented by Steve Keen — took the wrong turn
https://axecorg.blogspot.com/2016/04/where-advanced-heterodoxy-represented.html
Egmont Kakarot-Handtke
#Economics #FailedScience #FakeScience #CargoCultScience #ScientificIncompetence #OrthodoxEconomics #HeterodoxEconomics #Pluralism #DeleteEconomics #NewEconomicThinking #ParadigmShift #NewParadigm #Science
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