John Kenneth Galbraith
The Job Guarantee and the MMT Core: Part Thirteen, John Carney Is Full of Talking Points and That's Polite
In a piece called “More Questions About the Job Guarantee,” John Carney provides some links to the continuing debate on the Job Guarantee (JG). All the links are to posts critical of the JG idea except a link to one of my four posts critical of Carney's earlier work and supportive of the JG. Read more about The Job Guarantee and the MMT Core: Part Thirteen, John Carney Is Full of Talking Points and That's Polite
A little time out from my critiques of the various posts contending that the MMT Job Guarantee (JG) proposal is not the core of MMT as an approach. Read more about The Job Guarantee and the MMT Core: Part Eight, The JG Rate
One commenter at FireDogLake says:
”. . . we should be exceptionally careful not to jeopardize the hard-fought for benefits (like S.S.) by risking devaluation of the dollar. That would be truly tragic.”
and another at New Economic Perspectives says about Modern Monetary Theory (MMT) and inflation: Read more about Worrying About Demand-Pull Inflation Is A Distraction
In the big budget fight going on right now in Congress, the Tea Party conservatives rightly point out that $61 Billion in spending cuts is just a drop in the bucket compared to the $1.6 Trillion predicted deficit, and they react with a great deal of moral fervor to the suggestion that they ought to compromise on $33 Billion in cuts in order to avoid shutting down the Government. That moral fervor sounds perfectly reasonable to me as long as one agrees that Government spending causes inflation, that we now have a huge deficit, debt problem in the United States that we must solve, or face national insolvency in the not too distant future, and also if the people afire with moral fervor would also apply that to the issue of the wealthy paying their fair share of taxes. Read more about Neo-Liberalism Can't Beat the Tea Party: But MMT Can
After the scorching he received in many of the comments on his printing press post Paul Krugman decided to dig his MMT blogging hole even deeper.
“. . . I think one way to clarify my difference with, say, Jamie Galbraith is this: imagine that at some future date, say in 2017, we’re more or less at full employment and have a federal deficit equal to 6 percent of GDP. Does it matter whether the United States can still sell bonds on international markets?
The Modern Monetary Theory (MMT) approach to economics must be starting to make some waves, because today, Paul Krugman, followed his earlier attack on it and his debate with Jamie Galbraith and others last summer, with another swing at MMT. The debate last summer was an extensive one at Paul's blog site at the New York Times, and, in addition, there were a number of posts at other sites replying to Paul. The debate was a classic in the developing conflict of views between the “deficit doves” (represented by Paul) and the “deficit owls” (represented by Jamie Galbraith and other MMT writers).
Given the earlier debate, you'd expect that Paul's second try at MMT would reflect a bit of learning on his part, and also a characterization of the views of MMT practitioners that is a little more fair than he provided in his first attempt. This post will analyze Paul's new attack and assess how much he's learned. But first, I'll review the earlier debate. Read more about Paul Takes Another Swipe at MMT
Today, Yves Smith had a good piece at Naked Capitalism entitled: “Wall Street Co-opting Nominally Liberal Think Tanks; Banks Lobbying to become New GSEs.” The main point of the article was to point out that the Center for American Progress (CAP), a supposedly “liberal” Washington “think tank,” was proposing a housing finance reform plan that was a Read more about Quit Slandering “Liberalism”
Warren Mosler has an important forthcoming book called The Seven Deadly Innocent Frauds, which is, fortunately, available right now in a pre-publication version for reading and commenting from Warren's site. Read more about Jamie Galbaith's “Foreword” To Modern Money: A Commentary