EconoSpeak

Juan Cole reports that Iran's supreme leader, Ayatollah Khameini has responded to Trump's withdrawal from the JCPOA and Pompeo's Plan B 12 demands with 6 demands for Europe: 1) condemn the US withdrawal, 2) stop pressing Iran on missile development, 3) criticize any further US boycotts, 4) undo damage to Iran economy of boycotts especially to buy any oil not able to be exported because of them, 5) support financing of Iran economy, and 6) respond rapidly to these demands.  According to Cole...

From "Orientations and Proposals -- The Reduction of Working Time: Issues and Policies" of Andre Gorz's Critique of Economic Reason (1989) translated by Gillian Handyside and Chris Turner. I am posting the section on "The Right to an Income and the Right to Work" in two parts (go to part one). This is part two: The right to work, the duty to work and one's rights as a citizen are inextricably linked. In a Left conception, the point is therefore not to guarantee an income independent of any...

From "Orientations and Proposals -- The Reduction of Working Time: Issues and Policies" of Andre Gorz's Critique of Economic Reason (1989) translated by Gillian Handyside and Chris Turner. I am posting the section on "The Right to an Income and the Right to Work" in two parts. This is part one:The Right to an Income and The Right to Work  When the production process demands less work and distributes less and less wages, it gradually becomes obvious that the right to an income can no longer...

Earlier today ne US Secretary of State, Mike Pompeo, presented this administration's "Plan B" at the Heritage Foundation on how to deal with Iran following the US's withdrawal from the nuclear deal, the  JCPOA.  Pompeo presented 12 demands and threatened to impose "the strongest economic sanctions in history."  The Trump administration may wish to do the latter, but the  refusal of all the other parties to the JCPOA to go along with this effort will certainly guarantee that even if the...

“The basic idea is that the government can’t run out of money. It creates money just by spending.” -- Stephanie Kelton This is true. Government cannot run out of its own money. But what is money? It is a token or pledge that can be redeemed for something of value. If government creates much more money than there are things of value to redeem it for the prices of those things go up. Not to worry, Zach Carter assures us: But even inflation doesn’t impose a hard limit on policy options. The...

Class war? What class war? Stephanie Kelton Has The Biggest Idea In Washington  "Everybody wants a piece of Kelton these days because a simple, radical idea she has been workshopping her entire career is the next big thing in Democratic Party politics. She calls it the job guarantee... " "Once an outsider, her radical economic thinking won over Wall Street. Now she's changing the Democratic Party." "A onetime college dropout at California State University in Sacramento, Kelton has managed...

The current mania for "job guarantee" policies is making the Sandwichman anxious. I've been on the full employment beat for over 20 years so I think I have a pretty good grasp of the terrain. First principle is that there are no panaceas. My favorite policy option -- reduction of working time -- is not a panacea. Neither is yours.Like my learned friend Max B. Sawicky, I am in favor of a job guarantee -- provided it meets MY criteria. The proposals currently being shopped around don't. That...

Note: there was no fully correct answer to the Sandwichman's quiz, 200 Years, 200 Dollars! An anonymous commenter came tantalizingly close but missed on a technicality. The Adam Smith quote was correct but the Karl Marx quote was not a passage from Capital, which is what the question asked for. Below is the passage from Capital:  THE SO-CALLED LABOUR-FUNDIt has been shown in the course of this inquiry that capital is not a fixed magnitude, but is a part of social wealth, elastic and...

Matthew Yglesias notes: Trump stands to gain from an Indonesian project that got a $500 million loan right before he flip-flopped on ZTE… But it also happened the same week a Chinese state-owned company came through with hundreds of millions of dollars in loans, some of which will go to facilitate the construction of Trump-branded properties in Indonesia. Does anyone know what the interest rate will be on this loan? After all, it is highly unlikely that the lender has given Trump’s...

The whiplash that many observers have felt on learning of President Trump's about-face on China's ZTE telecom company from condemning it as violating US national security and violating sanctions rules by selling to North Korea and Iran has been pretty easily explained by our soon thereafter learning that China has provided a mere half a billion dollars to a project in Indonesia where Trump interests are deeply involved.  This is probably the most blatant violation of the Emoluments Clause of...