We already live in a planned economy. Why not make it a democratic one?You want to read this.
Jacobin
Socialze Finance
J. W. Mason | assistant professor of economics at John Jay College, City University of New York and a fellow at the Roosevelt Institute
4 comments:
Either private finance -- through their servant the Fed -- or society -- through a really democratic government which is capable of fully exercising its monopoly over money for the public good-- do the social planning (presently utterly under the thumb of private finance's looters, for their exclusive profit)that has ever existed.
"Yet on the other hand, the financial system is also where conscious planning takes its most fully developed form under capitalism. Banks are, in Schumpeter’s phrase, the private equivalent of Gosplan, the Soviet planning agency. Their lending decisions determine what new projects will get a share of society’s resources, and suspend — or enforce — the “judgment of the market” on money-losing enterprises."
According to Prof. R.A. Werner 'their lending decisions' should be circumscribed.
“Importantly for our disaggregated quantity equation, credit creation can be disaggregated, as we can obtain and analyse information about who obtains loans and what use they are put to. Sectoral loan data provide us with information about the direction of purchasing power - something deposit aggregates cannot tell us. By institutional analysis and the use of such disaggregated credit data it can be determined, at least approximately, what share of purchasing power is primarily spent on ‘real’ transactions that are part of GDP and which part is primarily used for financial transactions. Further, transactions contributing to GDP can be divided into ‘productive’ ones that have a lower risk, as they generate income streams to service them (they can thus be referred to as sustainable or productive), and those that do not increase productivity or the stock of goods and services. Data availability is dependent on central bank publication of such data. The identification of transactions that are part of GDP and those that are not is more straight-forward, simply following the NIA rules.”
http://eprints.soton.ac.uk/339271/1/Werner_IRFA_QTC_2012.pdf
J. W. Mason is a huge name in the world of finance. I am also interested in finance, economic history, the history of economic thought, and international finance and trade.I love to make fast cash and manage it properly.
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