Most of the world, and most notably the United States, are in the grip of fiscal myths fostered by the ideology of neoliberalism. There is virtual unanimity across the major political parties in the United States in accepting the viewpoint of neoliberalism, and the fiscal myths associated with it.
This book is about these myths, the arguments showing that they are, indeed, myths, and the truths that can counter them. It is about Campaign 2016, and some of its issues, because the fiscal myths will certainly be used in the Campaign; since, for the first time in a very long time, there is a major party candidate running, who, because he advocates for a very broad agenda and for fighting inequality, will, sooner or later, find that some, and perhaps a large number, of fiscal myths are being directed at him by his opponents and their supporters, who want to persuade voters that his agenda is “fiscally irresponsible.” Read more about Fiscal Myths of Campaign 2016: A New Kindle e-Book
Here are steps the President can take to win the battle for full employment over the opposition of the Republicans.
-- First, tell Americans that they have A RIGHT to a job at a decent wage with decent fringe benefits. If the private sector can't provide these jobs, then the Government must intervene to secure this right by implementing a Federal Job Guarantee (FJG).
My friend and MMT mentor, Warren Mosler offered this fine, simply stated speech to President Obama for September 8th.
My fellow Americans, let me get right to the point.
I have three bold new proposals to get back all the jobs we lost, and then some.
In fact, we need at least 20 million new jobs to restore our lost prosperity and put America back on top.
First let me state that the reason private sector jobs are lost is always the same.
Jobs are lost when business sales go down.
Economists give that fancy words- they call it a lack of aggregate demand.
But it’s very simple.
A restaurant doesn’t lay anyone off when it’s full of paying customers,
(Editor's note: I'm re-posting this here from moslereconomics.com with a follow-on commentary of my own with the permission of Warren Mosler)
From Warren Buffet to Alan Greenspan,
And from all the responses to the S and P downgrade by
economists and financial professionals from the 4 corners of the world,
THE WORD IS OUT!
The US government is the issuer of the US dollar.
So no matter how large the federal deficit might be: Read more about Connecting the Dots – Deficit Reduction Is Now Only About Inflation, Not Insolvency
Yesterday, must have been jobs day at The Washington Post since they ran two columns calling for job creation: one by Katrina vanden Heuvel and the other by Harold Meyerson. The crux of vanden Heuvel's column is: Read more about How do vanden Heuvel and Meyerson Expect Him to Get By "the Human Sacrifice Crowd"?
There have been many reactions to S & Ps action in downgrading the credit rating of the US, Apart from the widespread annoyance and repudiation of S & P and its procedures, there are some who are saying that it won't have much effect on interest rates. Others even saying that it is a “non-event,” and still others saying that S & P should be investigated and prosecuted on a number of grounds. However, I found two views of the “non-event” particularly interesting. Read more about Still Superman?
Last December, my friend beowulf had this to say at the time Moody's began to make noises about downgrading US debt. He said:
”I don’t think we’ll see Moody’s or any other rating service based in the US ever downgrade US Treasuries. It would cause a tremendous amount of financial loss and would leave Moody’s and its executives exposed to criminal prosecution. If I were Moody’s general counsel, I’d tell the CEO in no uncertain terms, Do Not Tug On Superman’s Cape.
14th Amendment, Sect. 5
As the United States Government approaches “running of money” to pay its bills, news articles and pronouncements by politicians about the debt ceiling dispute focus on several things. First, they talk about the dire consequences of defaulting on our obligations. Second, they talk about the need for spending cuts that will put us on a long-term path to balancing the budget, getting a Government surplus, and improving the debt-to-GDP ratio. Third, they talk about the debt ceiling preventing the Government from issuing further debt instruments to “fund” paying for its obligations. Read more about Brinksmanship On the Debt Ceiling
(Author's Note: In December I posted a piece on Moody's threat to downgrade the US's Rating in International Bond markets. I argued that Moody's action was foolish. Today, Standard and Poor's actually revised the US ratings outlook from stable to negative, but continued its sovereign credit rating at ‘AAA/A-1+’. Read more about Standard and Poor's: Bring It On!
Yesterday, as reported in Money News, Moody's made me laugh, with the following pronouncements:
” . . . it could move a step closer to cutting the U.S. Aaa rating if President Barack Obama's tax and unemployment benefit package becomes law. . . .
“The plan agreed to by Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years . . .
“A negative outlook, if adopted, would make a rating cut more likely over the following 12-to-18 months.
“For the United States, a loss of the top Aaa rating, reduce the appeal of U.S. Treasurys, which currently rank as among the world's safest investments.
"From a credit perspective, the negative effects on government finance are likely to outweigh the positive effects of higher economic growth," Moody's analyst Steven Hess said in a report sent late on Sunday.”