tag:blogger.com,1999:blog-2761684730989137546.post7105248194677971105..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: What could be wrong with a fiscal deficit? — Prabhat Patnaikmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2761684730989137546.post-76253160183007930262020-07-27T10:50:43.757-04:002020-07-27T10:50:43.757-04:00Capitalists get to hold green paper as the score o...<i>Capitalists get to hold green paper as the score of how well they have done. </i> NeilW<br /><br />Nevertheless, fiat is a public utility and large users/hoarders of it should pay for those privileges, e.g. negative interest.<br /><br /><i>Whether those things represent any sort of claim on anything depends entirely on whether government will allow them to use those pieces of paper for anything other than decoration.</i> ibid<br /><br />That's largely unenforceable unless anonymous physical fiat, aka "currency", is abolished. Otherwise, for example, cocaine would not be both highly illegal and yet readily available to bankers and the rich.<br /><br /><i>Which they will find out when they try to spend the money, and find government responds by taxing away spending capacity to stop the economy overheating.</i> ibid<br /><br />The dirty little secret of MMT tax policy is that taxes to curb price inflation MUST fall on the non-rich since the rich don't consume enough to matter.<br /><br />Much better are actual physical limits, ala the Bible, on how much land and other necessities of life (e.g. water rights) one may own.Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-72662197444721805672020-07-27T06:07:34.766-04:002020-07-27T06:07:34.766-04:00That’s wrong with a fiscal deficit
Comment on Prab...That’s wrong with a fiscal deficit<br />Comment on Prabhat Patnaik on ‘What could be wrong with a fiscal deficit? ’<br /><br />Prabhat Patnaik resumes “And here, the real point to note is the following. The claims that capitalists hold against the government because of the fiscal deficit have been put into their hands by the fiscal deficit itself.”<br /><br />Yes, that’s exactly what the macroeconomic Profit Law implies, i.e. Public Deficit = Private Profit.#1-#3 And by consequence, the financial wealth of the Oligarchy ≈ Public Debt of WeThePeople. The sign ≈ indicates that some other factors play a role that can be left out of the picture here.<br /><br />This, however, is only the first move in the distribution game. The Oligarchy gets interest on the public debt which is taxed from WeThePeople as long the debt is rolled over. The taxman makes sure for 200+ years now that interests are paid on time.<br /><br />The policy of deficit spending/money creation is the mechanism for the perpetual and progressive self-alimentation of the Oligarchy. Financial wealth grows in lockstep with public debt. Mr. Trump’s current policy will blow up macroeconomic profit to hitherto unimaginable proportions no matter whether unemployment falls or rises. This, after all, is why the Oligarchy put him into office in the first place.<br /><br />MMTers sell the biggest Ponzi scheme of all time as a good deed for the benefit of WeThePeople. Academic economists are already for a long time part of the scam.#4<br /><br />That’s wrong with a fiscal deficit: it is a political and scientific fraud. Economists will go to the scientific equivalent of hell for this. Except for Prabhat Patnaik, of course.#5<br /><br />Egmont Kakarot-Handtke<br /><br />#1 Profit<br />https://axecorg.blogspot.com/2020/06/profit-axiomatic-economics.html<br /><br />#2 Cross-references Profit<br />https://axecorg.blogspot.com/2015/03/profit-cross-references.html<br /><br />#3 The Profit Law, Wikimedia AXEC143d<br />https://commons.wikimedia.org/wiki/File:AXEC143d.png<br /><br />#4 Keynes, Lerner, MMT, Trump and exploding profit<br />https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html<br /><br />#5 Your economics is refuted on all counts: here is the real thing<br />https://axecorg.blogspot.com/2020/06/your-economics-is-refuted-on-all-counts.htmlAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-4305063351919223332020-07-27T01:13:40.638-04:002020-07-27T01:13:40.638-04:00"it is the capitalists whose savings increase..."it is the capitalists whose savings increase because of the fiscal deficit and who hold claims upon the government. "<br /><br />That's the mistake of Marxists right there. There are no claims on government. What you have instead is the solution to the capital accumulation problem and they hate it. <br /><br />Capitalists get to hold green paper as the score of how well they have done. Whether those things represent any sort of claim on anything depends entirely on whether government will allow them to use those pieces of paper for anything other than decoration. <br /><br />Which they will find out when they try to spend the money, and find government responds by taxing away spending capacity to stop the economy overheating. <br /><br />"Wealth inequality" doesn't exist if the government is on the side of the people. Government has infinite paper wealth. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-23300847965836849142020-07-26T20:14:43.610-04:002020-07-26T20:14:43.610-04:00Getting money out of politics should be the priori...Getting money out of politics should be the priority. Campaign finance reform, electoral reform, voter access reform, redistricting reform, should be added to the list.Peter Panhttps://www.blogger.com/profile/09473311771939167712noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-39632159517330772682020-07-26T20:01:35.337-04:002020-07-26T20:01:35.337-04:00Misses the point. The super-rich aspire to control...Misses the point. The super-rich aspire to control governments so they can put the message over the Little People will get badly hit by high taxes too!Anonymoushttps://www.blogger.com/profile/09889336010579375144noreply@blogger.com