Mike Norman Economics

In the perfect neoclassical world everyone gets what they produce, or deserve, as some people say, but it's a fantasy world that can never exist. Distribution is unfairly lopsided all over the place. For instance, if you have the right accent and went to a public (private) school in Britain, climbing up the ladder is much easier. That means less work for more gain.  Neoclassical Robinson Crusoe When it comes to explaining resource distribution, neoclassical theory is missing...

Before Thatcher, capital and labour had an even share – Labour merely plans to rebalance a skewed relationship Another good article in the Guardian today. The British Labour Party is set to reverse Thatcherism. The first was that the state must be prepared to invest if the private sector is unable or reluctant to do so. Capital is plentiful, interest rates are at historic lows, Britain’s infrastructure is badly in need of modernisation. Yet, businesses would rather sit on piles of cash or...

An interesting look at China from a different perspective. China may become more free and open, but will be nothing like the failed democracies of the West. The west is no longer the great example for what China might become and the yardstick to measure progress. It is not surprising that a newly confident China has rediscovered its history and finds value in it. Change will come, but in ways that will build on principles that have underpinned Chinese politics for centuries. They include a...

Here is total proof that it was the utterly corrpt Biden, a gangster that the crazed Democrats want to elect as President of the United States, who threatened the President of Ukraine, Poroshenko, and released one billion dollars to Poroshenko  when he did Biden’s will and stopped the investigation of a firm in which Biden’s son had substantial interests.   It should scare every American that the presstitutes bury the real story and shrilly proclaim a false one.  Our country, what little...

Revealing paper from 5 years ago from these two authors who seem to be providing advice again recently.Their chart shows Depository system reserves ideally being reduced to zero in a few years from now; I'd like to know how that could happen if there is a Depository reserve requirement of 10% of deposits and system deposits are $13T right now?  Algebra anybody???  anybody????BTW you can also see the big spike up they did in Sept. 2008 flipping the leverage ratio and caused the GFC but I...

Mike charting Reserves at Depositories vs. risk asset prices in the form of an equity share price index in time domain... revealing...

The British Labour Party would be good for small businesses. Should the UK’s small businesses be terrified of a Labour government? Maybe not so much: if they look through the increasing hysteria around Jeremy Corbyn’s supposedly hard left agenda, entrepreneurs may be surprised by what they find. Forbes  David Prosser - Why Small Businesses Should Not Fear Jeremy Corbyn

I've posted this chart before here... if these moron people are getting ready to reverse this trend from the recent multi-year reduction in CB assets as % GDP over to an increase in CB assets as a % of GDP then all I can say is ....  you better buckle up...

Why economists are so often wrong Friendship, kinship, loyalty, family, community, commitment, spirituality, passion for art, passion for life, etc, can't be put into the economist's equations. To them, we are just maximising utilty machines - which is how most economists relate to the world, so they think we are all like it. What is called “economics” is really psychology on steroids. It starts with a model of human nature and extrapolates an entire scenario for how the world works from...

Some people say economics should only about science, and that other economic theories lack scientific credence or vigour, but people are not machines, and so we need a humane, more people friendly, economic system. Hungry people would get fed if we had a Job Guarantee.  MEMPHIS, Tenn. — Army veteran Eugene Milligan is 75 years old and blind. He uses a wheelchair since losing half his right leg to diabetes and gets dialysis for kidney failure. And he has struggled to get enough to eat....