I like
aphorisms: short pithy sayings. As to “economics aphorisms” Keynes produced a
good one: “Look after unemployment and the budget will look after itself”.
And Mosler’s Law is also a good one. It
actually says much the same the above Keynes aphorism. It’s to be found at the
top of Warren Mosler’s site in yellow (see image below). It goes “There is no financial crisis so
deep that a sufficiently large tax cut or spending increase cannot deal with
it.” However I suggest a slight change.
It should
start “There is no recession so deep….”. I.e. the word recession replaces the
two words “financial crisis”. That is, and to be accurate, tax cuts or spending
increases deal with RECESSIONS. They don’t really deal with financial crises as
such. Put another way, tax cuts or spending increases deal with recessions
regardless of whether they are sparked by financial crises or other factors.
Now
aphorisms are supposed to be short and accurate summaries of some idea or
other. And I’ve shortened Mosler’s law by one word and made it more accurate.
Warren really ought to send me a bunch of flowers..:-)
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