tag:blogger.com,1999:blog-2761684730989137546.post4174777723967857052..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Dirk Ehnts — A simple macroeconomic model based on Modern Monetary Theory (and published in 2014 in a peer-reviewed journalmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2761684730989137546.post-90393803573274112192019-03-20T07:00:11.037-04:002019-03-20T07:00:11.037-04:00Cross-posting
The public-debt and private-profit ...Cross-posting<br /><br />The public-debt and private-profit pushers<br />Comment on Lars Syll/Dirk Ehnts on ‘Public debt — a macroeconomic necessity’<br /><br />Dirk Ehnts argues: “The problem stems from the fact that the affluent, which include successful entrepreneurs and capital owners, save relatively more than average or poor households … For this to work out, additional demand would have to be created … The implication of this is that there’s a macroeconomic requirement to run public deficits, founded on a demand gap that arises from households and firms wanting to set aside savings in the form of money … This demand gap cannot be closed but by an increase in government spending and hence debt.”<br /><br />This is at best a half-truth.<br /><br />The macroeconomic Profit Law is given by Q=Yd+(I−S)+(G−T)+(X−M). In order to focus on the interaction between the household sector and the government sector, it is here reduced to Q=−S+(G−T). Legend: Q macroeconomic profit, S household sector saving, G government expenditures, T taxes.<br /><br />If the government’s budget is balanced, i.e. G=T, and if the households dissave, i.e. S≡Yw−C<0 Legend: Yw wage income, C consumption expenditures, then the business sector makes a profit, i.e. Q is positive. This is a sustainable situation for the business sector, however, since the household sector’s debt grows, all depends on how long this can go on which, in turn, depends on the institutional make-up of the banking sector.<br /><br />If the government’s budget is balanced, i.e. G=T, and the households save, i.e. S≡Yw−C>0, then the business sector makes a loss, i.e. Q is negative. This is not a sustainable situation.<br /><br />However, if the government’s budget deficit, i.e. (G−T)>0, is equal to the household sector’s saving, i.e. (G−T)=S, then macroeconomic profit Q is zero. This is the minimum condition for the market economy to function. If the government’s deficit is greater than household sector saving, then the business sector makes a profit. This is a sustainable situation for the business sector, however, since the government sector’s debt grows, all depends on how long this can go on. MMTers claim that, as a matter of principle, sovereign debt can grow indefinitely.#1<br /><br />So, government deficit spending in excess of household sector saving, i.e. (G−T)>S, makes that overall profit is positive and this prevents the breakdown of the market economy. In other words, the so-called free market economy hangs on the life-support of the State. In still other words, fabulous financial wealth is the mirror image of fabulous public debt ($22 trillion).<br /><br />It is correct to say that a minimum government deficit, i.e. (G−T)=S, is necessary in order to secure the very existence of the market economy. From a systemic standpoint, the historically evolved economic system has a serious construction flaw. And the claim of the free-market champions that the State should keep out of the economy is suicidal stupidity.<br /><br />However, as far as the government deficit exceeds saving, i.e. (G−T)>S, this amounts to a free lunch for the Oligarchy. So, in the final analysis, the MMT policy of permanent deficit-spending/money-creation does NOT benefit WeThePeople but the Oligarchy.#2<br /><br />The public-debt pusher Lars Syll/Dirk Ehnts either do not understand macroeconomics#3 or they are two of Wall Street’s many academic trolls.#4<br /><br />Egmont Kakarot-Handtke<br /><br />#1 Some nasty MMT surprises behind the time horizon<br />https://axecorg.blogspot.com/2019/02/some-nasty-mmt-surprises-behind-time.html<br /><br />#2 MMT Progressives: stupid or corrupt or both?<br />https://axecorg.blogspot.com/2018/08/mmt-progressives-stupid-or-corrupt-or.html<br /><br />#3 Keynesians ― terminally stupid or worse?<br />https://axecorg.blogspot.com/2017/08/keynesians-terminally-stupid-or-worse.html<br /><br />#4 MMT: The fusion of Wall Street and Academia<br />https://axecorg.blogspot.com/2018/12/mmt-fusion-of-wall-street-and-academia.htmlAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-63514130609642541992019-03-15T11:46:41.793-04:002019-03-15T11:46:41.793-04:00Kaivey's tablet is in error.
∑(a + b)2 = a2 ...Kaivey's tablet is in error. <br /><br />∑(a + b)2 = a2 + 2ab + b2; a2 + b2 = ∞ f(x)=a_0+∑_(n=1)^∞(a_n cos nπx/L+b_n sinnπx/L) (a+b)2 −2ab−b = 0<br /><br />Hedgemount Karaoke CrabwankKonradhttps://www.blogger.com/profile/01739209449391854796noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-74646809997929448992019-03-15T11:36:27.743-04:002019-03-15T11:36:27.743-04:00OFF TOPIC
Why right wingers and neoliberal Democr...OFF TOPIC<br /><br /><b>Why right wingers and neoliberal Democrats hate Alexandria Ocasio-Cortez...</b><br /><br />From a Tweet on 13 March 2019...<br /><br />Cost of the GOP Tax Scam for the rich: $1.8-2.3 Trillion <br /><br />Cost of forgiving all student loans in America: $1.5 Trillion <br /><br />Clearly where there’s a will, there’s a way. <br /><br />When people say that there isn’t “enough” to do these things, what they mean is they don’t <b><i>WANT</i></b> to do them.<br /><br />https://twitter.com/AOC/status/1105980449652949002Konradhttps://www.blogger.com/profile/01739209449391854796noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-33016124924932354142019-03-15T09:31:52.447-04:002019-03-15T09:31:52.447-04:00cant with for Egmont to "prove" this fal...cant with for Egmont to "prove" this false ...Noah Wayhttps://www.blogger.com/profile/12012500819097539976noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-80941553981565218962019-03-15T05:01:40.003-04:002019-03-15T05:01:40.003-04:00My tablet stoped working so they sent a new one, w...My tablet stoped working so they sent a new one, which broke down within two days. So I'm out of action for a while, although I my use my PC later, if I get time when I get home. Kaiveyhttps://www.blogger.com/profile/04195639305785321786noreply@blogger.com