Table 1: Lower Rate of Profits around a Switch Point Tradional Marginalist Story'Perverse' Marginalist Story Traditional Austrian StoryGreater net output per workerSmaller net output per worker More roundabout techniqueMore roundabout technique Switch pt. in region 2, 1st in region 52nd switch point in region 3, 2nd in region 6 'Perverse' Austrian StoryGreater net output per workerSmaller net output per worker Less roundabout techniqueLess roundabout technique 1st in region 3, 1st and 3rd in...

Less than 24 hours later, the sellers came back with a vengeance. 

Before that was bond panic.

The facts ma’am, just the facts. 

Many electrons have been inconvenienced over this topic, and most have been in vain. I’ve wondered all week whether I had anything meaningful to add. However, a few points that have emerged in discussions are worth highlighting....New WaylandThe Accursed Tariffs NeilW

So imminently employers of  millions of illegals are gonna be submitting their FICA tax reports containing those now DOGE deleted 9M SSNs and IRS is gonna immediately flip that information over to ICE for immigration raids probably to the largest offenders first…Could be a mass firing event which probably won’t show up in UE claims because the current employees are illegal… maybe job openings will spike up … while UE rate appears constant…So Art degree Fed morons will interpret that as...

 I am a bit late with this. I have been jammed this week and just got to. It's an explanation of the Trump tariffs. It's the brain child of Stephen Miran, chair of the Council of Economic Advisors. Miran lays it out in  A User’s Guide to Restructuring the Global Trading System. Simplicius summarizes it briefly.Bill Mitchell deals with this from the MMT point of view in today's post, which I linked to earlier.Simplicius the ThinkerTrump's "Liberation Day": Another PR Gag, or Global...

The system we are on, floating exchange rates, tend to mitigate tariff-driven price increases 

 Last week, the US President honoured his election promise, indeed his long-held commitment, to increase tariffs on imported goods and services to the US. The formula they came up to differentiate between countries was bizarre but I don’t intend commenting on that here, except to say, the imposition of tariffs on the – Heard Island and McDonald Islands – which are an ‘Australian external territory’ that is a ‘a volcanic group of mostly barren Antarctic islands, about two-thirds of the way...

Why, under capitalism, do periods of persistent unemployment arise? Robert Lucas says the problem is to explain why workers do not to want to work: "A theory that does deal successfully with unemployment needs to address two quite distinct problems. One is the fact that job separations tend to take the form of unilateral decisions - a worker quits, or is laid off or fired - in which negotiations over wage rates play no explicit role. The second is that workers who lose jobs, for whatever...