tag:blogger.com,1999:blog-2761684730989137546.post8901544927783920755..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Raúl Carrillo — Hy Minsky, Low Finance: Modern Money, Civil Rights, and Consumer Debtmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-2761684730989137546.post-74048386718012186092017-09-30T13:15:55.824-04:002017-09-30T13:15:55.824-04:00Science and technology have enabled humanity to li...Science and technology have enabled humanity to live a much better life than previously thought imaginable, but humanity is limited in its adaptability to changing conditions by evolutionary traits that make it suitable for living in previous times rather than the present and especially not the fast approaching future opportunities that come with their own challenges. <br /><br />In addition to genetic limitations imposed by biological evolution, cultural and institutional limitations are also imposed by historical development, which involves path dependence.<br /><br />Add to that, the hierarchical structure of intersecting networks that enable class structure and power, hence the development of asymmetries that limit systemic effectiveness and efficiency.<br /><br />When this happens in an ecosystem operating on the laws of nature, a culling is foreseeable. <br /><br />While humans are not as completely determined as lower forms, their degree of freedom is constrained by many factors that prevent the use of using feedback for learning, applying creativity on a large scale, and otherwise adapting to emergence and increasing the return on coordination by applying intelligence.<br /><br />It's looking like we have outsmarted ourselves.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-23947235872893731032017-09-30T13:04:41.757-04:002017-09-30T13:04:41.757-04:00That's true Tom, the way to do it is to isolat...That's true Tom, the way to do it is to isolate each part of the system in terms of inputs and outputs and get specialised people "obsessed" with that knowledge/technical domain to just work on it and iterate over it. The people in charge of architecting only needs to break down things in terms of inputs/outputs (which is no simple feat tbh). And keep iterating over it.<br /><br />Is the best way to get something as free of bias (which by no means would be perfect) as possible.<br /><br />Our current "democratic" system is failing, it doesn't iterate fast enough on issues and is sclerotic with corruption, ideology and stupidity. Things that need fixing and improvement are not being worked on because we are blocked by ideological warfare. <br /><br />Technocracy is dangerous, but what we got now is not even close to technocracy, is a bunch of headless bureaucrats and politicians with agendas trying to find multiple ways to fuck us all and manipulating a percentage of the population to get away with it.<br /><br />I agree with Matt when he says "the executive (as is) is not equipped to deal with this issues" (or something along those lines). But there is no solution on sight, getting rid of whoever is on top of the power structure leaves a vacuum and chaos takes place.Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-6957550179442416082017-09-30T11:41:53.122-04:002017-09-30T11:41:53.122-04:00I bet things would automatically turn better if we...I bet things would automatically turn better if we could achieve a self-sufficient automated system and get the human factor out of the way.<br /><br />Have to avoid GIGO though. After all humans write the code. Machine can be faster in "thinking" than humans but not necessarily smarter in the sense of a comprehensive take on intelligence. Computers are just computational machines.<br /><br /><a href="https://en.wikipedia.org/wiki/Theory_of_multiple_intelligences" rel="nofollow">Theory of Multiple Intelligences</a>Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-11502310364740148312017-09-30T11:22:21.053-04:002017-09-30T11:22:21.053-04:00Solution: Challenge the present tptb as unqualifie...<i>Solution: Challenge the present tptb as unqualified... call them out on it....</i><br /><br />Who would replace them? The elite is "the elite". Supposedly the best we got? Meanwhile we have top PhD in maths and engineers who believe in a gold standard.<br /><br />We have to live with the fact that most humans are ill-equipped to really think at systemic level in a systematical way. Maybe there is no solution until the system complexity outgrows our capacity to understand it and we have to let machines do the work automatically.<br /><br />I bet things would automatically turn better if we could achieve a self-sufficient automated system and get the human factor out of the way.Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-2404573763230106932017-09-30T09:34:46.832-04:002017-09-30T09:34:46.832-04:00Who is going to do it? Who is going to coordinate ...Who is going to do it? Who is going to coordinate it. Who is going to script it? Who is going to pay for it?<br /><br />So far it has been impossible to dislodge even the top level economists from their perch.<br /><br /><a href="https://en.wikipedia.org/wiki/Belling_the_cat" rel="nofollow">Belling the catt</a>Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-80919231183659876772017-09-30T08:56:37.539-04:002017-09-30T08:56:37.539-04:00As a person who lived through harmful inflation wi...As a person who lived through harmful inflation with modern instituional arrangements, I would like to know what evidence is that...<br /><br />Excessive and wrong government spending can bring harmful inflation to modern economies. And MMTers don't deny that.<br /><br />But there are some ways to spend a lot that do not bring inflation - for example, in a Jog Guarantee program with controlled wages. You can spend a lot of the federal budget on that and will would have no inflation. That's what MMT theory says anyway. And mainstream economists will believe that such program is the chaotic end of the universe.Andréhttps://www.blogger.com/profile/10935332922520483975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-21312729909994972812017-09-30T08:05:54.778-04:002017-09-30T08:05:54.778-04:00"There is no evidence a developed capitalist ..."There is no evidence a developed capitalist economy can suffer harmful inflation with modern institutional arrangements. "<br /><br />Ha who needs evidence with these people...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31178131158953502532017-09-30T06:49:49.413-04:002017-09-30T06:49:49.413-04:00There is no evidence a developed capitalist econom...There is no evidence a developed capitalist economy can suffer harmful inflation with modern institutional arrangements. Worrying about it, as though one wrong move will destroy the universe, is like worrying one might accidentally summon Bloody Mary by saying her name too many times.Anonymoushttps://www.blogger.com/profile/11018306000410021518noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-80385688592309783832017-09-30T00:00:47.757-04:002017-09-30T00:00:47.757-04:00Solution: Challenge the present tptb as unqualifi...Solution: Challenge the present tptb as unqualified... call them out on it....<br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-56618810816238671102017-09-29T22:52:31.581-04:002017-09-29T22:52:31.581-04:00Executive not technically qualified or competent.....<i>Executive not technically qualified or competent...</i><br /><br /><br />And the solution is in a democratic republic?<br /><br />We already know that the selection process is the problem. What's the solution?Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-12031721395963749282017-09-29T22:05:57.841-04:002017-09-29T22:05:57.841-04:00Salsabob: people intuitively understand their is a...Salsabob:<i> people intuitively understand their is an inflationary constraint, that there is no fountain of unlimited "free money." </i><br /><br />Agreed. MMTers should more often say that governments can run out of munnie - munnie that is worth anything, that is. But this is no reason for current economic policy of auto-erotic self-strangulation because it hurts the lesser people so good. <br /><br /><i>The only operationalized mechanism for the inflationary constraint IS deficit hysteria.</i> <br /><br />Quite wrong. First-lesson-in-MMT tools of ZIRP and the JG are exceedingly powerful, long term, operationalized mechanisms to crush inflation, and ones that mesh with and potentiate other tools. MMT thinkers and forerunners have devised and implemented many other tools for a long time - more than any other school I know of. Based on such history, an MMT guided state would have the least inflationary currency the world has ever seen. Deficit hysteria, on the other hand is a good way over the long term to create banana republics, and has been helping make the USA one since the 1980s.Calgacushttps://www.blogger.com/profile/06031818010224747000noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-17930685975291704082017-09-29T21:59:44.904-04:002017-09-29T21:59:44.904-04:00Executive not technically qualified or competent.....Executive not technically qualified or competent...<br /><br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-63244596794554713722017-09-29T21:58:02.450-04:002017-09-29T21:58:02.450-04:00Salsabob,
"but ask any one of them how they ...Salsabob,<br /><br />"but ask any one of them how they would operatonalize that constraint to avoid harmful inflation"<br /><br />The answer is the Job Guarantee Program.<br /><br />Jobs for everyone, with controlled wages to avoid inflation. Unlimited federal budget to that program - the spending will automatically reach some kind of limit anyway, the one corresponding to full employment.Andréhttps://www.blogger.com/profile/10935332922520483975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-59265431117882982862017-09-29T21:43:47.772-04:002017-09-29T21:43:47.772-04:00Humphrey-Hawkins Full Employment Act:
https://en....<i>Humphrey-Hawkins Full Employment Act:<br /><br />https://en.wikipedia.org/wiki/Humphrey%E2%80%93Hawkins_Full_Employment_Act<br /><br />Already done....<br /><br />What's the problem?????</i><br /><br />Not implemented.<br /><br />Congress has no power to force the executive to implement the law. President do so selectively.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-44523998920798468292017-09-29T21:32:48.728-04:002017-09-29T21:32:48.728-04:00Tom,
Humphrey-Hawkins Full Employment Act:
https...Tom,<br /><br />Humphrey-Hawkins Full Employment Act:<br /><br />https://en.wikipedia.org/wiki/Humphrey%E2%80%93Hawkins_Full_Employment_Act<br /><br />Already done....<br /><br />What's the problem?????Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-47556932445141016232017-09-29T21:18:06.176-04:002017-09-29T21:18:06.176-04:00Matt, policy has to be translated into bills that ...Matt, policy has to be translated into bills that pass through the political process and become law. The law has to be constructed so that the executive actually carries out the intent of the legislators.<br /><br />This is a very technical process that requires a high level of expertise. Generally this is done by staff but legislators are supposed to understand what they are proposing and voting on, at last in principle.<br /><br />But what actually happens wrt to a lot of legislation in the US is that lobbyists write the laws, put some $ into the pols campaign finance bucket, and the pols pass the laws. The people paying the lobbyists also pay highly qualified lawyers to write the bills to make sure that they get just what they want.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-56357548862829925342017-09-29T21:07:10.054-04:002017-09-29T21:07:10.054-04:00Tom using math within the academe shouldnt be a sh...<i>Tom using math within the academe shouldnt be a show stopper...</i><br /><br />It's not an issue as long as it remains in academia. Math doesn't export well, especially when large-scale persuasion is involved, as in politics.<br /><br />It's probably impossible to explain MMT to most people when even the so-called smartest people in academia can't seem to get it.<br /><br />On the other hand, if the Chinese or Russians come to understand it at the top level, they can just do it.<br /><br />The American public is so programmed by deficit and debt hysteria, MMT policy is unlikely ever to happen in the US.<br /><br />Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-74762092016182130282017-09-29T20:59:39.885-04:002017-09-29T20:59:39.885-04:00"Must-read for all "
F that...
Let him..."Must-read for all "<br /><br />F that...<br /><br />Let him go and take 2 years of college level math and while he is at it then take Intro to Statics for 3 credits and Intro to Dynamics for 3 and then get back to me....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-49105161687515451062017-09-29T20:54:29.874-04:002017-09-29T20:54:29.874-04:00This comment has been removed by the author.Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-74489993357877039842017-09-29T20:53:36.537-04:002017-09-29T20:53:36.537-04:00Jeff how does that scheme work for truck drivers i...Jeff how does that scheme work for truck drivers in San Juan right now?Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-46446463791313899082017-09-29T20:19:54.263-04:002017-09-29T20:19:54.263-04:00Salsabob,
Baloney.
It is a simple how to operati...Salsabob,<br /><br />Baloney.<br /><br />It is a simple how to operationalize the inflation constraint: the government mustn't compete with the private sector on price. It should buy idle resources. If the government requires a scarce resource it should allocate that resource. This is already done: the draft, eminent domain, control of permits and licenses, etc.<br /><br />Easily understood and implemented. We already know how to do it - we've done it before.Jeff65https://www.blogger.com/profile/10718489243428165684noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-30086401643336237612017-09-29T20:00:21.512-04:002017-09-29T20:00:21.512-04:00Tom using math within the academe shouldnt be a sh...Tom using math within the academe shouldnt be a show stopper...<br /><br />Tom why is this:<br /><br />When I was earning my STEM degree, I had to take 6 credits in Economics electives to get MY degree.. I took Intro to Micro and Intro to Macro for 3 credits each... got my 6...<br /><br />How come THEY dont have to take 6 credits in MY discipline to earn THEIR degree?<br /><br />Its "inequality!!!"...<br /><br />If I was one of these big "inequality!" people out there, I might go all "inequality!" on you on this... <br /><br />"hey! this is inequality!!!!!"<br /><br />Its like this lawyer guy I have to read here... why do I have to read this BS?Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-30330898365395244322017-09-29T19:00:27.128-04:002017-09-29T19:00:27.128-04:00Alfred Marshall (Principles of Economics) is credi...Alfred Marshall (Principles of Economics) is credited as being one of the first to introduce (partial) formalization in economics.<br /><br /><i>I know I had a growing feeling in the later years of my work at the subject that a good mathematical theorem dealing with economic hypotheses was very unlikely to be good economics: and I went more and more on the rules — <br /><br />(1) Use mathematics as a short-hand language, rather than as an engine of inquiry. <br /><br />(2) Keep to them till you have done. <br /><br />(3) Translate into English. <br /><br />(4) Then illustrate by examples that are important in real life. <br /><br />(5) Burn the mathematics. <br /><br />(6) If you can’t succeed in 4, burn 3. This last I did often.<br /><br />I believe in Newton's Principia Methods, because they carry so much of the ordinary mind with them. Mathematics used in a Fellowship thesis by a man who is not a mathematician by nature---and I have come across a good deal of that---seems to me an unmixed evil. And I think you should do all you can to prevent people from using Mathematics in cases in which the English language is as short as the Mathematical. ....</i><br /><br /><a href="http://www.rasmusen.org/zg601/readings/marshall.htm" rel="nofollow">Alfred Marshall, Letter to Bowley</a><br /><br />To get traction politically you have to speak simply — as Donald Trump has demonstrated in spades. This probably means aiming at the 8th grade level.<br /><br />There are apps that will assess the grade level. In popular writing I aim at the 11th or 12th grade level, but I am just trying to reach people and not persuade them to take action. <br /><br />Motivating people to vote for you or policies you advocate and getting them fired up to actually get out and vote in large numbers is a skill. Wonkish = fail.<br />Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-75808416443952840432017-09-29T19:00:11.937-04:002017-09-29T19:00:11.937-04:00bob they are going to have to deep 6 the entire &q...bob they are going to have to deep 6 the entire "inflation!" and "deflation!" metaphors...<br /><br />And instead listen to Warren when he says under the current operations: "all prices are necessarily a function of what the govt pays for things and what they let their banks lend against things..." this makes sense....<br /><br />Warren has the correct concept here which is what they should be building on.... its just too much for the MMT academe of economics people... they just cant go that far so they are stuck in that "inflation!" trap you point out<br /><br />Its a good point you have... its true...<br /><br /><br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-35325352801877422612017-09-29T18:50:33.249-04:002017-09-29T18:50:33.249-04:00"getting on talk shows, etc. Also expensive.&..."getting on talk shows, etc. Also expensive."<br /><br />Mike used to actually get paid BY Fox to go on talk shows....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com