Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Wednesday, 1 June 2011
Economically illiterate economists: they’re everywhere!
150 economically illiterate economists have petitioned Obama to cut public spending. Apparantly is will cure America’s economic ills.
The flaws in this argument are basic, simple, glaring and elementary.
1. If a low level of public spending is essential to a healthy economy, how come some European counties enjoy similar living standards to America, while having levels of public spending relative to GDP that are double that of the U.S.?
2. The decision as to what level of public spending a county has is a POLITICAL decision. It is the basic political difference between left and right. It is a decision that is made at election time, not by economists.
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Aargghh. Couldn't stomach reading the whole list a few days ago. And the maniac Trichet has come out with a new plan for a European authority to veto national decisions that don't enrich banksters enough. Greece should ask him, "Sez you and what Wehrmacht?"
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