The Lens with Stephanie Kelton
Something I've Always Wanted To Do — A TED talk
Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders
10 comments:
What sort of audience watches TED talks?
I want to see Bill do a Ted talk.
I suspect it would be excellent.
If he brings his guitar.
I suspect that after Stephanie we will see more such appearances by MMT economists. The narrative is shifting quickly now.
Can someone explain the difference to me in layman terms and put this to bed once and for all.
If Investment Creates Savings.
http://heteconomist.com/investment-creates-saving/
What is Salmo going on about here and never shuts up about it. Why is the way modern banks make loans attacked so venomously and seen as a bad thing by Salmo ? Always moaning about velocity. Saying this is the reason for America's problems.
If investments create savings anyway. Why does Salmo want bank lending to go back to a wonderful life style lending ? Savings and loans type lending.
https://seekingalpha.com/user/7143701/comments
If Investment Creates Savings anyways has he got the whole thing backwards ?
From inception the very beginning of time. I still struggle to see how investment creates savings like Warren says. How can you invest to create savings if you never had any assets that allowed you to invest in the first place ?
Or is the answer to that conundrum for me to get assets in order to allow me to invest somebody else would have to have invested that created my savings ? For every saver there is a borrower.
Is this not a chicken and the egg story ? If only one person is alive on the planet ?
Can someone clean this mess up for me. Is Salmo right ? The way banks loan today creates savings to clog up the system and destroy velocity. Compared to how they used to do it.
please don't say half right. He is either right or wrong.
I've seen Cullen attack MMT and JKH attack MMT on this investment creates savings narrative.
How did MMT economists defend themselves against these attacks ?
"How can you invest to create savings if you never had any assets that allowed you to invest in the first place ?"
You always have assets. You have your future time which means collectively the state has future taxation. And of course somebody has to own the land and the natural resources thereupon.
Investment comes from that base. The state leverages everybody's future time which means it can spend first and tax later. The banks leverage the land area of the country and people's future time, which then creates buildings and the banks leverage those further, and so on. That's the bootstrap process.
One of the reasons why Warren favours financial decollateralisation for banks - to force them to stop being glorified temple money changers and start being banks.
“ You always have assets. You have your future time which means collectively the state has future taxation”
Govt can’t use accrual on the LHS Neil…. That is not how Modified Accrual works…
"Govt can’t use accrual on the LHS Neil…. That is not how Modified Accrual works…"
Govt can use whatever it wants on the LHS because it is not bound by *corporate* accounting standards.
And that is exactly what it does. On the UK government accounts it is called "Total liabilities to be funded by future revenues" and is the balancing figure.
Cheers Neil,
As always...
The problem is Salmo doesn't know how to fix it. He thinks move back to a wonderful life and banks will start lending and putting savings back to work. As if that magically happens. Without thinking about what to do to encourage demand so that productive loans will be made in the economy.
The job guarentee and cutting the pension age to drive productivity makes them see a red under every bed. They think leave the private sector alone and they will create utopia it is nuts.
There is absolutely no way to heal the divide in US politics everything is so ideologically driven. There is just no room for common sense.
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