Wednesday, June 30, 2021

Thomas Palley — The Macroeconomics of Government Spending: Distinguishing Between Government Purchases, Government Production, and Job Guarantee Programs

This paper reconstructs the Keynesian income – expenditure (IE) model to include distinctions between government purchases of private sector output, government production, and government job guarantee program (JGP) employment. Analytically, including those distinctions transforms the model from a single sector model into a multisector model. It also surfaces the logic behind the automatic stabilizer property of JGP employment. The model is then extended to include Kaleckian income distribution effects which contribute to explaining why expenditure multipliers vary by type of fiscal expenditure. The Kaleckian version generates a new balanced budget multiplier driven by changed composition of government spending. It also illuminates some macroeconomic implications of privatization of government produced services....
Post Keynesianism Economic Society

See also by Thomas Palley

PERI (2 June 2021)
Proto-Fascism Unleashed: How the Republican Party Sold its Soul and Now Threatens Democracy

See also

That we are even talking about this indicates a lot — this system is not working.

Naked Capitalism
Biden Classifies Opposition to ‘Capitalism and Corporate Globalization’ As Extremism
Yves Smith

See also
Fossil fuel companies lied for decades about climate change, and humanity is paying the price. Shouldn’t those lies be central to the public narrative?
Reminiscent of Big Tobacco and the cancer coverup? And a host of similar crimes attributable to corporate greed, not the least of which is war. See Gen. Smedley Butler, War Is A Racket.

The climate crisis is a crime that should be prosecuted
Mark Hertsgaard


Corruption watch.
Dems bankrolled by Big Pharma are suddenly targeting Nina Turner right after she aired an ad touting Medicare for All.
Daily Poster
Dems Launch Proxy War On Medicare For All
David Sirota and Julia Rock

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