Las Cruces Sun-News
MMT economists look at debt, deficit differently
It would be a shocking scandal if it came to light that the professions of medical science had, for decades, known about an easy to treat, underlying cause of cancer—but conspired to obfuscate and suppress the information to protect their participation in a medical industry raking in hundreds of billions a year to treat the disease. Professional standings, tenures, licenses would be in tatters. Lawsuits would abound. Outrage would march on every city hospital and medical college in the nation—would it not?
Such a betrayal is not humanly possible, right? Yet is it not the case that the professions of economics, journalism and politics are guilty of something very like this kind of betrayal?…I would make the lede a story of betrayal by companies that knew that smoking caused cancer and denied and concealed it.
Although mainstream economics prides itself on being highly precise and mathematical, this is not apparent when looking at the discussion of fiscal policy. It is very easy to find appeals to intergenerational fairness when discussing fiscal policy. Such a term is essentially meaningless in technical terms; it is mainly used as a ploy to evoke images of doe-eyed grandchildren being robbed by nefarious politicians. This article explains why the concept is largely worthless as an analytical concept....Bond Economics
The British Labour Party is currently leading the Tories in the latest YouGov opinion polls (February 19-20, Tories 40 per cent (and declining), Labour 42 per cent (and rising). They should be further in front, given the disarray of the Conservatives as they try to negotiate within their own party something remotely acceptable about Brexit. When there is this degree of political capital available, in this case for the Labour Party, a party should use it to redefine policy agendas that have gone awry. To build a narrative that will advance their cause for the future decades. British Labour has a chance to break out of its recent Blairite neoliberal past and present a truly progressive manifesto to the British people that will force the Tories to move closer to the centre and squeeze the extreme right-wing elements. In part, under Jeremy Corbyn and John McDonnell, Labour is making progressive noises on a number of fronts. But ultimately, where it really matters – the macroeconomic narrative – they are remaining firmly neoliberal and this will blight their chances of pursuing a truly progressive agenda. One of the glaring mistakes the Labour Party has made is to accept advice from neoliberal economists (so-called New Keynesians) who have instilled in them a need for fiscal rules. This is a three-part analysis of the sort of advice that Jeremy Corbyn and John McDonnell are getting and why they should ignore it....Bill Mitchell – billy blog
Everyone knows governments need to tax before they can spend. What Modern Monetary Theory presupposes is, maybe they don't.Surprisingly decent article on MMT considering the dismissive headline. Covers most of the bases.
Let’s go back to the future and create livable wage jobs again for every man or woman who needs one. There is a new economics (Modern Monetary Theory aka MMT) that has designed Job Guarantee (JG) proposals that are carefully crafted to complement the need for real, full employment when the private and public sectors fail to meet the needs of our workforce.
MMT economists understand that our capitalist economy must be organized for the benefit of everyone (i.e., Main Street communities, not just Wall Street investors). Without good jobs, our communities will continue to face all the costly and humiliating symptoms of poverty: food insecurity, unaffordable housing, drug abuse, domestic violence, the school-to-prison pipeline, etc.
A Job Guarantee program is both practical and affordable. MMT economists would tap the nonprofit sector to fund jobs that are needed now to meet the needs of our communities. The upfront costs would be high (some estimates are around three quarters of a trillion dollars), but it would save money in the long run by reducing the “safety net” costs and increasing local tax revenues. The Federal Reserve spent far more dollars bailing out the big banks after the Great Recession of 2007-08.
These would not be make-work jobs: skilled and unskilled labor is needed right now to insulate homes, plant trees, expand after school programs, offer rides to senior citizens, clean up our neighborhoods, etc. Ask any nonprofit agency if they are ready to hire. When true full employment returns, the private sector will again attract workers from the JG programs, many with new skills and work experience. JG programs will shrink as the private sector expands. More tax returns will strengthen local government services.
MMT economists have operated in the shadows of the dominant Chicago school of economics and the neoliberal policies of government austerity and income inequality driven by economic globalization, which benefits multinational corporations at the expense of Main Street local economies. We are fortunate in central Ohio to have a major think tank for MMT economists at Denison University in Granville. Anyone interested in JG programs and macroeconomic policies may visit the Binzagr Institute for Sustainable Prosperity.Columbus Underground
A new report from Bard College’s Levy Economics Institute concludes that this bold idea – cancelling all outstanding student debt – would help the entire economy and create more than a million jobs.
To those who say we can’t afford to cancel this debt, the report poses a new and different question: Can we afford not to?
Cancel and Grow
Using widely-accepted economic tools, the report’s authors – Scott Fullwiler, Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum – found that cancelling all student debt this country would create between 1.2 and 1.5 million new jobs. It would also increase the nation’s GDP by $86 billion to $108 billion per year over the next ten years....Common Dreams
The supplemental leverage ratio, which measures capital as a percentage of assets, restricts the amount of loan-making banks can make without raising more capital.
Fed Chairman Powell said he supports "recalibration" of the supplementary leverage ratio https://t.co/z9tyHV2mS2— WSJ Financial Reg (@WSJFinReg) February 27, 2018