Monday, October 27, 2014

Marshall Auerback — Hillary Clinton Is Right – And Will Be Crucified For It

The experience of the Second World War showed governments that full employment could be maintained with appropriate use of budget deficits. The employment growth following the Great Depression really only accelerated with the onset of the War. 
All the orthodox neoclassical remedies that had been tried during the 1930s largely failed. These are the same policies that are being proposed by neo-liberal economists now. We have short memories. But Hillary Clinton is right. This can’t be done by the private sector in the absence of sufficient demand for its products/services. 
The post WWII period was marked by governments maintaining levels of demand sufficient to ensure enough jobs were created to meet the demands of the labour force, given labour productivity growth. 
Governments used a range of fiscal and monetary measures to stabilise the economy in the face of fluctuations in private sector spending. We need to be honest enough to remember our history to eliminate the scourge of unemployment. It’s doubtful that Hillary would go this far, but she is being more truthful than she might realise.
Macrobits by Marshall Auerback
Hillary Clinton Is Right – And Will Be Crucified For It
Marshall Auerback


Matt Franko said...

"(Reuters) - The huge U.S. budget deficit poses a national security threat and projects a "message of weakness" internationally, Secretary of State Hillary Clinton said on Wednesday as she urged Democrats and Republicans to tackle the problem.

Clinton, in a speech heralding a new "American moment" in U.S. foreign policy, said the Obama administration's policy of greater engagement with the world has brought dividends such as a united front against Iran's nuclear ambitions.

But she again stressed the corrosive effect of the mounting U.S. debt, which she said threatened the United States' ability to chart its own course in the world and sends "a message of weakness internationally."

"It poses a national security threat in two ways: it undermines our capacity to act in our own interest, and it does constrain us where constraint may be undesirable," Clinton said in response to a question after her address to the Council on Foreign Relations think tank."

Yeah way to go and get behind Hilary.... do we ever wonder why we continue to get nowhere?

Anonymous said...

She might have been right about something she was trying to say, or meant to say. But what she actually said was extremely sloppy, and clearly false. Its obvious that businesses create jobs.

Maybe what she meant to do was call attention to these falsehoods:

1. Businesses create jobs all by themselves, without assistance from government.

2. Businesses are the only folks that create jobs.

3. Since businesses create jobs, nothing else can create jobs.

mike norman said...

Ha! Like she really believes that. She is doing what Barack did, which is, to say anything to get elected then once in office she will give handouts and welfare payments to her corporate and billionaire friends and take from the middle class and poor with spending cuts and additional taxes.

Greg said...

Surprises me that Marshall would laud Hillary for these comments

Matt Franko said...

" Employees of Soros Fund Management donated $75,000 last year to Ready for Hillary, a political action committee devoted to Hillary Clinton’s potential 2016 presidential run."

Soros/INET is a big Hilary political supporter.... Soros cant stand Putin, Hilary is a big Putin basher, Marshall is with the INET people, etc...

So the politics creates a 'cognitive bias' here:

"cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, or what is broadly called irrationality."

So we end up in some sort of alternative reality where we can think Hilary understands FFNC economics or something, etc...

It gets to this point via 'cognitive biases'.... in this case 'politics'....


Nebris said...