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, October 22, 2018
Lars P. Syll — Why so-called deficits are economic necessities
Lars Syll reiterates: “ … so-called deficits are economic necessities”. Actually, this is so because the Oligarchy needs the macroeconomic profit (which is equal to public deficit) for self-alimentation and for rigging the political process such that deficit-spending/money creation can go on in a positively reinforced feedback loop.
Lars Syll, the loudspeaker of Heterodoxy/Post-Keynesianism, has always been an agenda-pusher of Wall Street in the Friend-of-the-People garb.#1, #2
Egmont Kakarot-Handtke
#1 Very busy these days: Wall Street’s agents https://axecorg.blogspot.com/2018/10/very-busy-these-days-wall-streets-agents.html
#2 Keynes, Lerner, MMT, Trump and exploding profit https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html
Kakarot-Handtke is a gramophone stuck in the same groove. He keeps claiming deficit dollars all flow to the elite. Certainly the share of national income grabbed by the elite needs to be reduced, but deficits boost job creation for the low paid and those on average incomes as well.
I don't get it either, if deficit spending goes straight to the elite, then there is a case for taxing them more, but Egmont seems to have a blind spot here. Alright, it would be difficult to tax them more in this climate, but if we were ever to get a government implementing MMT, then we're on our way.
You say: “… but deficits boost job creation for the low paid and those on average incomes as well.”
Not necessarily. If the deficit is increased and the price increases unemployment stays put but macroeconomic profit increases one-to-one because Public Deficit = Private Profit. Your employment theory is rather simple-minded. For enlightenment see:
Full employment through the price mechanism https://axecorg.blogspot.com/2017/11/full-employment-through-price-mechanism.html
and cross-references Employment http://axecorg.blogspot.com/2015/08/employmentphillips-curve-cross.html
EK-H seems to have trouble writing English sentences that actually mean anything. This one is just plain meaningless:
" If the deficit is increased and the price increases unemployment stays put but macroeconomic profit increases one-to-one because Public Deficit = Private Profit."
#PublicDeficitIsPrivateProfit
ReplyDeleteLars Syll reiterates: “ … so-called deficits are economic necessities”. Actually, this is so because the Oligarchy needs the macroeconomic profit (which is equal to public deficit) for self-alimentation and for rigging the political process such that deficit-spending/money creation can go on in a positively reinforced feedback loop.
Lars Syll, the loudspeaker of Heterodoxy/Post-Keynesianism, has always been an agenda-pusher of Wall Street in the Friend-of-the-People garb.#1, #2
Egmont Kakarot-Handtke
#1 Very busy these days: Wall Street’s agents
https://axecorg.blogspot.com/2018/10/very-busy-these-days-wall-streets-agents.html
#2 Keynes, Lerner, MMT, Trump and exploding profit
https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html
Kakarot-Handtke is a gramophone stuck in the same groove. He keeps claiming deficit dollars all flow to the elite. Certainly the share of national income grabbed by the elite needs to be reduced, but deficits boost job creation for the low paid and those on average incomes as well.
ReplyDeleteI don't get it either, if deficit spending goes straight to the elite, then there is a case for taxing them more, but Egmont seems to have a blind spot here. Alright, it would be difficult to tax them more in this climate, but if we were ever to get a government implementing MMT, then we're on our way.
ReplyDeleteSanjay Mittal, Kaivey
ReplyDeleteYou say: “… but deficits boost job creation for the low paid and those on average incomes as well.”
Not necessarily. If the deficit is increased and the price increases unemployment stays put but macroeconomic profit increases one-to-one because Public Deficit = Private Profit. Your employment theory is rather simple-minded. For enlightenment see:
Full employment through the price mechanism
https://axecorg.blogspot.com/2017/11/full-employment-through-price-mechanism.html
and cross-references Employment
http://axecorg.blogspot.com/2015/08/employmentphillips-curve-cross.html
Egmont Kakarot-Handtke
I do sometimes look at your blog, Egmont. Interesting!
ReplyDeleteWhat MMT says is that deficit spending can boost the economy creating jobs.
I guess you would disapprove of the Republicans deficit spending to give tax breaks to the rich.
EK-H seems to have trouble writing English sentences that actually mean anything. This one is just plain meaningless:
ReplyDelete" If the deficit is increased and the price increases unemployment stays put but macroeconomic profit increases one-to-one because Public Deficit = Private Profit."
Ralph Musgrave
ReplyDeleteTime for you to learn the basics of economics.
Employment theory as an example of proto-scientific soapbubbling
https://axecorg.blogspot.com/2017/11/full-employment-through-price-mechanism.html
Egmont Kakarot-Handtke