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It is axiomatic that hard times makes for conservative politics. The antidote to hard times is government deficit spending. MMT shows why this deficit spending is desirable and necessary. In fact, in conjunction with Post Keynesian Economics, it shows why the relative austerity we have been experiencing since 2009 is both undesirable and unnecessary. Had we employed appropriate fiscal policy in 2009 we could have returned the economy to the baseline from which it fell. Instead, due to silly inflation panic, we grew slowly from a reduced baseline. The difference over a decade is trillions of dollars of potential GDP lost forever, along with the prosperity that would have brought.

I have never known what to make of the California Cohort, perhaps that is a Mandarin phrase, perhaps it is a play on 'petite bourgeoisie'. If the language reference is to economics, yes, it is a language, and no, I am not an economist, but the language of economics is easier to learn than Mandarin. I have spent the last ten years studying economics, economic history, the history of economics, etc. As Keynes' student Joan Robinson told the assembled American Association of Economists one year in an annual address, the purpose of an education in economics is to prevent being deceived by economists.

Deception is exactly what most US Economists have provided to the US population, and that deception has been used to enforce austerity and to facilitate the looting of the nation by the elite. Which is why I think it is time for that deception to end. With a larger role for government spending, properly done, prosperity can return to the average citizen, and with that prosperity, the kind of confidence we need to tackle the challenges that lie ahead. That prosperity will also reduce the pressure that has led the USA to the brink of a fascist takeover. IMO, an outcome devoutly to be desired. You may differ or scoff as you will.

As to Italy or other members of the Euro-Zone, they do not have the same latitude with fiscal policy as does the USA, or even the UK. This is because those countries are currency users, not currency issuers, and the European Central Bank sets monetary policy for the Euro-zone predominantly in the interest of the strongest economy, Germany. Worse, they enforce rules about the maximum deficit a country can run that can be very harsh indeed on some of the smaller economies. So MMT is not an option for Euro-Zone countries.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Oct 27th, 2019 at 12:51:40 AM EST
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