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Tag Archives: Uncategorized

Jeremy Corbyn On His And Tony Benn’s Positions On The EU And Brexit

Jeremy Corbyn On His And Tony Benn’s Positions On The EU And BrexitJeremy Corbyn appeard in a recent episode of the podcast Benn Society and at around 13:31 in the audio, he is asked about his and Tony Benn’s position on Brexit since both were opposed to the EU.Of course, as expected his answer was messed up as he never took a clear position but you can listen to what happened directly from him and how it cost Labout the election.Image credit: Jeremy Corbyn on Twitter

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Neochartalists’ Rhetoric Against Raising Taxes

Neochartalists (“MMTers”) have a strange political positions. Although many of their proposals can be left-leaning, some of their proposals are highly right-wing. So Warren Mosler argues for removal of most taxes for example.In a recent “webinar”, Monetary Finance In The Age Of Corona Virus: MMT And The Green New Deal, Stephanie Kelton is seen making similar rhetoric.click to see the video on YouTubeThe irony is that she has been an advisor to Bernie Sanders, the politician who has proposed...

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Economic models and reality

from Lars Syll The abandonment of efforts to match real structures has led to disaster, as models of economic theory have grown progressively distant from reality. Attempts to fix the problem have failed to address the cause. Economists look at bad models, and say we should replace these by better models. But the process by which models are evaluated, the underlying methodology, is not examined. The real problem lies much deeper than bad models and ludicrous assumptions. Bad assumptions...

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Joan Robinson On Public Sector Deficits And Debt

Some good quotes by Joan Robinson on deficits and debt:In Introduction To The Theory Of Employment, Chapter 5, Change In Thriftiness, in the section A Budget Deficit, 1937:A special kind of reduction in thriftiness is represented by a budget deficit. If the state is paying out more money in salaries to civil servant, commissions to contractors and so forth, than it is receiving in taxation, and is borrowing the difference by issuing Treasury bills or otherwise raising loans from the public,...

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Rational choice theory — an abysmal failure

Lars Syll Though an enthusiast of reason, I believe that rational choice theory has failed abysmally, and it saddens me that this failure has brought discredit upon the very enterprise of serious theorizing in the field of social study … Rational choice theory is far too ambitious. In fact, it claims to explain everything social in terms of just three assumptions that would hold for all individuals in all social groups and in every historical period. But a Theory of Everything does not...

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Joan Robinson On Michal Kalecki’s Claim To Priority

Keynesian policy is popular again. Many fiscal hawks are now arguing for stimulus, although they want to do it only temporarily. I came across this 1976 article Michal Kalecki: A Neglected Prophet by Joan Robinson where she argued once again for Michal Kalecki’s originality.Robinson:He told me that he had taken a year’s leave from the institute where he was working in Warsaw to write his own General Theory. (When his early Polish essays were published in English, it became clear that he had...

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The sure way to end concerns about China’s “theft” of a vaccine: Make it open

from Dean Baker In the last couple of weeks both the New York Times and National Public Radio have warned that China could steal a vaccine against the coronavirus, or at least steal work in the U.S. done towards developing a vaccine. Both outlets obviously thought their audiences should view this as a serious concern. As I wrote previously, it is not clear why those of us who don’t either own large amounts of stock in drug companies or give a damn about Donald Trump’s ego, should be upset...

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How economic models became substitutes for reality

from Asad Zaman The problem at the heart of modern economics is buried in its logical positivist foundations created in the early twentieth century by Lionel Robbins. Substantive debates and critiques of the content actually strengthen the illusion of validity of these methods, and hence are counterproductive. As Solow said about Sargent and Lucas, you do not debate cavalry tactics at Austerlitz with a madman who thinks he is Napoleon Bonaparte, feeding his lunacy.  Modern macroeconomic...

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Who’s been laid off?

David Ruccio If we needed any more confirmation of who’s been laid off during the current crisis, all we need to do is examine the change in average hourly wages in the United States. In the past month (so, April 2020), the year-over-year increase in hourly wages jumped to 7.9 percent. That’s more than three times the average increase since 2008 (2.5 percent) and more than two and half times the increase since Donald Trump took office (3 percent). That doesn’t mean American workers are...

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