It’s Wednesday and as usual I just present some short snippets that have attracted my attention this week and other things that distract me from economics. Today, we don’t talk about the British royalty at all – the events this week were from another world really. But what is not from another world is the continual nonsense being spoken and written about this inflationary period and how central banks and treasuries have to tighten up to ‘beat it’. Talk about anachronism. And once we have discussed those things, I offer some soothing music to reduce the state of angst....
Bill Mitchell – billy blog
Dangerous anachronisms continue – and I am not talking about the British royaltyBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
3 comments:
“ So think about a situation where the government increases net spending (a rising deficit) and the extra spending increases employment in the economy, drives the unemployment rate down to full employment levels, increases the net financial wealth of the non-government sector, and, in the process builds some essential infrastructure or improves the education or health system.”
All he left out was the part where tax revenues would increase due to the higher govt spending and he’d be going full Art Laffer…,
MMT: “if someone saves (creating deficit) then we can’t buy all of our output (creating unemployment)...”
So a zero deficit would be ideal … if one’s goal was maximum employment…
An anachronism would be the libertarian conception of a free market economy.
Or Maoism.
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