Video at Steve Keens' DebtWatch (fast forward to 3:56)
From Zombie Banking to Zombie Democracy on Capital Account
By Steve Keen
Keen makes the point that New Classical economics is incompatible with liberal democracy and shows how the structure of the EZ under the Eurocrats reflects this.
Lots of zombies out there for sure!
ReplyDeleteLet's take some solace in the fact that we are not among them....
Resp,
I especially appreciated the middle section of the interview in which Steve stressed the undemocratic nature of neo-liberalism. When neo-liberals get their way, as they did with the setting up of the EMU, member governments are denied an exchange-rate policy, a monetary policy, and effectively a fiscal policy in that it is put in a straightjacket (legitimated by dodgy economic theory, e.g., ricardian equivalence). Now that all that has gone wrong, the neo-liberals seek to reinforce the antidemocratic measures by replacing elected politicians with technocrats.
ReplyDeleteOn the subject of MMT and democracy, Bill Black has an excellent article today - Addressing the Dominant Critique of MMT
ReplyDeleteQuote:
I'll begin by addressing today the dominant concern critics have expressed here -- the government might act badly with the funds. This is, of course, a real concern. But it is some ways a very odd concern and not a logical objection to MMT. The extreme variant of this critique argues that MMT is "fascist."
The good news from the standpoint of MMT is that this critique agrees that MMT is accurate and makes available policy choices that are effective in increasing income and employment -- and claims that MMT's effectiveness is the problem because the government leaders might use the increased income and wealth for evil purposes.
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Right Clonal if they use the "fascist" objection then logically they have ceded the economics... Checkmate!
ReplyDeleteResp,