Here is my Wednesday news blog post which ends as usual with some music – today some consummate guitar playing. Today, I discuss the dispute about M4A in the US and clear up some misconceptions. Many think that Medicare for All is defunct in the US because the ruling party – the Democrats have essentially rejected the lobbying attempts. Some people who have associated themselves with Modern Monetary Theory have, it seems, been advocating a state-based campaign to get single-payer schemes installed at that level. Is this a violation of MMT principles? Some think so. I do not. It might reflect ignorance of the nature of the sector but it doesn’t amount to a rejection of MMT. Anyway, I am a federalist and I explain why. I also bring attention to some anti-colonial struggles in the Caribbean....Bill Mitchell – billy blog
Single-payer health care should be funded by the federal government
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
17 comments:
Bill is a real "should" fan...
Exactly Peter !
Oblivious to the fact that we have reached peak MMT
Will be entertaining to watch MMT'rs defend the inflation narrative when the war is over.
When the censorship/ cancel machine turns on MMT with a vengeance.
And MMT'rs say but but but but but but Countries have a choice.
After having a ring side seat of all the complete Bull shit over the last month.
Still believe this "info war" can be won in a class room.
The name on the ballot box to change things will never appear.
In the one party nation states The sheep have allowed to be created under neoliberalism, Globalism, EU expansion and NATO expansion.
Mike has been right all these years. Because nothing is ever going to change. Why he concentrated on the markets and not the politics.
MMT and Power – Part 1
http://bilbo.economicoutlook.net/blog/?p=47229
MMT and Power – Part 2
http://bilbo.economicoutlook.net/blog/?p=47401
Looking forward to the next 5 parts. Without the complete delusion this time.
We have all just watched as the "real power" tried to cancel Russia.
Cancelling MMT will be a walk in the park.
"Shuda, Cuda, Wuda "
Will be the epitaph.
Surely there are only so many "Shuda, Cuda, Wuda " articles you can write before reality takes a big bite oot of yer arse.
They are in danger of selling out for book sales.
Stephanie probably already has. Only time will tell.
With her don't hate the players hate the game nonsense. As if they are seperate cogs of the machine.
It's his life's work. Not easy to let go...
"Will be entertaining to watch MMT'rs defend the inflation narrative when the war is over."
That's straightforward.
The tactic we need to adopt is to highlight the effect of interest rates as people perceive them.
Why do we tolerate banks putting up our mortgage rates and rents? That means we have less money to spend and that money is then given to rich people with savings making them richer.
Instead why don't we tax businesses more since they are making a packet putting prices up.
“ Still believe this "info war" can be won in a class room.”
Bill has stayed away from the war porn… bill probably legit non hypocrite anti war person…
And All they have to do is convert the degree program to Science from Art and it will be won in a classroom…
They can win in as many class rooms as they like.
It is real power they need.
You know, the power you have just watched up close for a month.
Who are you going to vote for that takes what they learned in the class room to the role of President ?
Give me a shout when they appear on the ballot box.
Bill had a meeting with Corbyn's people.
Before he got Corbynised by the "real power" structure in the UK. The very same power structure you have been watching up close for a month.
They still would entertain him. The real power circled around Corbyn so Bill couldn't get close.
Look what they did with Bernie in the US. The block voting within each party will not allow any MMT'r near the place.
I'm even willing to bet that in 10 years time MMT will be no closer to power than they are today. A job guarentee will still not be in place in the US by
24 March 2032.
They even tried to ban MMT in the House
https://hern.house.gov/news/documentsingle.aspx?DocumentID=219
And John Yarmuth the vocal voice of MMT in the House is retiring this year and will no longer be there.
https://fivethirtyeight.com/features/why-28-house-democrats-arent-running-again/
That's the reality.
No matter how much I want to wish it away.
Instead why don't we tax businesses more since they are making a packet putting prices up.
Tax incidence.
Businesses earn their returns on equity after all costs, including the cost of taxes. Business taxes are ultimately borne by consumers and show up as higher prices for goods and services, Harberger's analysis of tax incidence notwithstanding.
Apologies to NeilW for quoting from one of his comments on tax incidence where he quoted Ruml (it happened to be in a bookmarks folder I have on tax incidence):
Ruml made the point about corporation tax in "Taxes for Revenue are Obsolete" in 1946.
It is impossible to know exactly who pays how much of the tax on corporation profits. The stockholder pays some of it, to the extent that the return on his investment is less than it would be if there were no tax. But, it is equally certain that the stockholder does not pay all of the tax on corporate income — indeed, he may pay very little of it. After a period of time, the corporation income tax is figured as one of the costs of production and it gets passed on in higher prices charged for the company's goods and services, and in lower wages, including conditions of work which are inferior to what they otherwise might be.
The reasons why the corporation income tax is passed on, in some measure, must be clearly understood. In the operations of a company, the management of the business, directed by the profit motive, keeps its eyes on what is left over as profit for the stockholders. Since the corporation must pay its federal income taxes before it can pay dividends, the taxes are thought of — the same as any other uncontrollable expense — as an outlay to be covered by higher prices or lower costs, of which the principal cost is wages. Since all competition in the same line of business is thinking the same way, prices and costs will tend to stabilize at a point which will produce a profit, after taxes, sufficient to give the industry access to new capital at a reasonable price. When this finally happens, as it must if the industry is to hold its own, the federal income tax on corporations will have been largely absorbed in higher prices and in lower wages. The effect of the corporation income tax is, therefore, to raise prices blindly and to lower wages by an undeterminable amount. Both tendencies are in the wrong direction and are harmful to the public welfare.
Incidentally, Canada's upcoming federal budget might impose a 3% surtax on profits over $1 billion for Canada's banks and insurers. I would expect this to be followed shortly after by increased credit spreads and user fees for the banks, and increased premiums for the insurers.
AOC knew about MMT, then got corrupted. Teach one, lose one...
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