An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Monday, April 25, 2016
Brad DeLong — A Methodological-Moral Struggle Over the Sanders Economic-Policy Proposals
Why is the balance of trade not considered. A budget deficit and trade deficit each at -3% of gdp is fiscal neutrality. The budget deficit needs to exceed the balance of trade to be stimulative IMO. Another Key is to spend money on projects that cannot import - like infrastructure. Labor and cement tend to be local. I know itbis more complex that that, but....
It's not clear what DeLong is saying -- he quotes so many different economists and it's not clear whether he is agreeing with them or disagreeing with them. But it sounds like DeLong buys into supply-side limitations?
Politically, it's a moot point because the die was cast when Bernie lost New York. It's over unless Hillary dies in the next few months. Bernie-nomics is not going to happen. Why are we still talking about Bernie?
"Why is the balance of trade not considered. A budget deficit and trade deficit each at -3% of gdp is fiscal neutrality."
Mac that is basically where we are for like 2 or 3 years now.... only foreign savings of USDs... seems to be mostly Chinese accumulating/skimming all that they can and bugging out of that hell hole to US and Australia...
From that perspective, bernie's plan to tax domestic entities to "balance the budget" while ignoring the foreign sector savings is domestic economic suicide... and not even close to being in paradigm... who the hell is advising him????
Oh, almost forgot, if you ever talk about the foreign sector, the MMT top end lefties automatically think that is the "xenophobia!" going on there ... so you cant talk about the foreign sector... never mind....
Why is the balance of trade not considered. A budget deficit and trade deficit each at -3% of gdp is fiscal neutrality. The budget deficit needs to exceed the balance of trade to be stimulative IMO. Another Key is to spend money on projects that cannot import - like infrastructure. Labor and cement tend to be local. I know itbis more complex that that, but....
ReplyDeleteIt's not clear what DeLong is saying -- he quotes so many different economists and it's not clear whether he is agreeing with them or disagreeing with them. But it sounds like DeLong buys into supply-side limitations?
ReplyDeletePolitically, it's a moot point because the die was cast when Bernie lost New York. It's over unless Hillary dies in the next few months. Bernie-nomics is not going to happen. Why are we still talking about Bernie?
"Why is the balance of trade not considered. A budget deficit and trade deficit each at -3% of gdp is fiscal neutrality."
ReplyDeleteMac that is basically where we are for like 2 or 3 years now.... only foreign savings of USDs... seems to be mostly Chinese accumulating/skimming all that they can and bugging out of that hell hole to US and Australia...
Mac,
ReplyDeleteFrom that perspective, bernie's plan to tax domestic entities to "balance the budget" while ignoring the foreign sector savings is domestic economic suicide... and not even close to being in paradigm... who the hell is advising him????
Oh, almost forgot, if you ever talk about the foreign sector, the MMT top end lefties automatically think that is the "xenophobia!" going on there ... so you cant talk about the foreign sector... never mind....
ReplyDelete"Oh, almost forgot…"
ReplyDeleteYou almost forgot continuing making things up? I don't think so.
Talk about beating a dead horse...
ReplyDelete