Mike Norman Economics

Capitalism is an economic system that favor capital (ownership) over labor (people) and land (the environment) because capital formulation generates growth and "a rising tide lifts all boats" (trickle down). Socialism is an economic system that favors labor (people) and land (the environment) over capital (ownership) because the economic system is the life-support system of society and needs to be subjected to the comprehensive needs of society, which are social and political in addition...

All of the above, of course, is simply the fleshing out of assumptions. We assumeddiminishing productivity in the last hours, we assumed heightened productivity from a shorter working week and we assumed declining marginal utility of goods and services produced. Finally, we assumed a preference for free time over a vanishingly small increment of total income. The point is that each of these assumptions were relatively modest but when combined "add up" to a rather substantial cumulative...

I had an engineer around today and we got talking about politics, but it turned he was on the right. He told new we tried socialism and it didn't work, but is the Conservative Party style of capitalism working?Two thirds of the British people are now the poorest in Western, Northern Europe. And the NHS is terribly underfunded and waiting lists have become extremely long. The rich avoid their taxes while their monopoly capitalism has brought wages down, so the taxes the government collects...

Investors panic sell because Kudlow says US and China still far apart on a trade deal. LOL!!

Essentially, Ocasio-Cortez is continuing to argue for Modern Monetary Theory — something she said "absolutely" needs to be "a larger part of our conversation" in a recent Business Insider interview. The theory says that because governments can literally print money, "they can spend as much as they like," Politico explains. "Inflation is the only obstacle" that should stop the presses, The Week details here. In short, it's a big, untested idea for a big, untested plan. Read more two...

Here he goes again. "Zimbabwe."Tim Worstall knows better. MMT's bottom line is availability of real resources to meet effective demand. Zimbabwe's problem is exceeding its real resource constraint fiscally. The predicable result based on MMT analysis is inflation.  This is trivial. Either Tim Worstall is ignorant of MMT, or he is being disingenuous. Continental TelegraphZimbabwe’s Third Time Lucky – The Return Of The Zim$ Tim Worstall

Fair and balanced. Stephanie Kelton speaks for the MMT view. The other side is presented, too, but I would say that the debate goes to left in this article. For Politico, overall positive, and that says something of itself. MMT is getting harder to dismiss offhandedly.PoliticoOcasio-Cortez boosts progressive theory that deficits aren't so scary Victoria Guida

China needs to keep growth high enough to maintain social stability, but also must preserve external stability via the renminbi’s exchange rate. How China manages its currency during its economic policy shift could have important global consequences. China is not sovereign in its currency since it pegs to the dollar. Currency sovereignty requires floating the rate whereas as peg sets a fixed rate. This means that China domestic policy is constrained by have to manage the exchange rate...

"We knew it all along."Project SyndicateDebt Derangement Syndrome Brad DeLong | Professor of Economics, UCAL Berkeley

The older generation may not like it but the world they created and are trying to passing on, or pass off, is being rejected by the younger generation, which favorable to socialism. Why is that? What is capitalism? Favoring capital (ownership) over labor (people) and land (environment).  What is socialism? Favoring labor (people) and land (environment) over ownership. No-brainer unless you have been brainwashed by ownership. Occasional Links & CommentarySocialism and...