Saturday, May 30, 2020

John Maynard Keynes: How Much Does Finance Matter? Brad DeLong


Keeper Keynes quote anticipating the fundamental assumption of MMT that the only actual constraint is real resources, which is the foundation of Stephanie Kelton's new book, The Deficit Myth (available June 9).

Professor DeLong does not state this explicitly, but we can probably assume that this post is not a coincidence and it is as close as he wants to get.

Anyway, Keynes make the point that so-called affordability is a non-issue.  Austerity in the name of fiscal responsibility is a monumental error the cost of which through needlessly foregoing inherent potential is incalculable.

Grasping Reality
John Maynard Keynes: How Much Does Finance Matter?
Brad DeLong | Professor of Economics, UCAL Berkeley

10 comments:

Andrew Anderson said...

Except government fiat created for the general welfare must compete with the deposits of a government-privileged usury cartel created for the private welfare of the banks and the most so-called "credit worthy" for real resources.

Andrew Anderson said...

Or "No one can serve two masters." Matthew 6:24

Matt Franko said...

"Austerity in the name of fiscal responsibility is a monumental error the cost of which through needlessly foregoing inherent potential is incalculable."

Only a Democrat shill like Tom could write something like that...

Trump is blowing out government spending its up like 900B for the FYoY... SO FAR...

Phase 4 yet to come...

Democrats are the ones who impose "fiscal responsibility"....

Peter Pan said...

Bill Mitchell is putting words in Tom's mouth. The new Hegel?

S400 said...

“Trump is blowing out government spending its up like 900B for the FYoY... SO FAR...“

Only a right wing nut job can say something like that without any thoughts on -ON WHAT?

What you spend on is the important question once you decide to spend.

Calgacus said...

Matt- neither DeLong nor Tom mentioned Trump or any current events in their purely theoretical comments, which could have been written 50 years ago. So how is Democratic shilling even possible?

Who disagrees that the Dems are unfortunately the party of fiscal responsibility in action? The Repubs are shriller and louder about it when they are out of power, but abandon it immediately in office, while the Dems carry it out.

It seems you are actually agreeing with what Tom said in reality, what you quoted.

Matt Franko said...

No this is what Tom does:

If the Democrat policy is shitty, he makes the general case....

If the GOP policy is shitty, he says “it’s the Republicans!”

Here the matter is a Democrat one so ofc he makes the general case...

Tom (really the whole MMT Trump Deranged Art Degree brigade) are all biased Democrat shills...

Matt Franko said...

Trump is blowing out government spending and “teh deficit!” and the MMT people are STILL bearish just like they have been for the last many years...

They are all trump deranged morons...

Matt Franko said...

“ Only a right wing nut job can say something like that without any thoughts on -ON WHAT?”

lol Trump is just giving individuals and small businesses direct fiscal transfers for shutdown ...

They can spend it on anything they want..

Matt Franko said...

Hey s400 douche here is right from one of Mikes recent reports see for yourself non empirical uneducated moron:

“ Major Line Items
Social Security, $601 bln, up $10 bln.
Medicaid, $276 bln, up $25.7 bln.
Interest on Treasury securities, $172.2 bln, down $32.7 bln. This is a calendar quirk as mentioned. Friday’s data (May 15) will include a quarterly interest payment bringing current fiscal year interest above 2019 by about $8 bln. This is also the reason for the dip in total y-o-y spending differential.
Defense vendor payments, $231.5 bln up $19 bln.
Federal salaries up $2.2 bln to $119.4 bln.
IRS individual tax refunds up $172 bln to $422.7 bln.
Unemployment insurance benefits, $111.2 bln, up $92.4 bln.
Supplemental Nutrition Assistance Programs (Food Stamps), $42.7 bln, up $1.9 bln.
Marketplace payments (healthcare subsidies), $36.3 bln, up $1.3 bln.
Other withdrawals, $513 bln, down $35.6 bln.
Education Department programs, $111.2 bln, down $651 mln.
HUD, $45.7 bln, down $745 mln.”