Category Archives: Guest Blogger

Greg Mankiw Discovers the Math and the Arithmetic on the Same Day

By Dale Pierce

Raising taxes is a good idea after all. In fact, it is now quite necessary, according to former Romney flack and alleged deep thinker Greg Mankiw of Harvard University. (Whose introductory textbook in economics may go down in history as the single greatest disinformational success of all time.)

In this Sunday’s New York Times, Prof. Mankiw bravely challenges what he takes to be the newly prevailing group-think in Washington – namely, the bi-partisan idea that “taxes on the middle class must not rise.” This is “Bad Math”, we are told. This does not accord with the “laws of arithmetic” – at least not as Prof. Mankiw understands them. It is, he concludes, our government’s stubborn reluctance to tax the non-rich which explains why “the political process has become so dysfunctional.”

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Jumping the Abyss: Marriner S. Eccles and the New Deal, 1933-1940

By Mark Nelson

We capitalists have got to decide how much we are going to pay for capitalism.[1]

Marriner S. Eccles: New York Times, May 1935

This is the crowd that wants power rather than recovery- the crowd that for 12 years was in power, that tried the very policies which ended in the greatest smash in our economic history; the crowd that willed this administration a debt of 20 billions and a demoralized, prostrate country; yet they have the sublime audacity to propose that we go back to the very policies which wrecked the country. They have been proved false profits on their own record.[2]

Marriner S. Eccles: memo to FDR, December 1935

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Financial Crisis – Class Project

By Todd Drummond & Michael Flanigan

This is one of the projects completed for Dr. Kelton’s graduate macroeconomics course, Fall 2012.

Two Ideas for Promoting Multi-Sectorial Analysis

By Thornton (Tip) Parker

This discussion goes beyond MMT and MS, and advocates of those ideas may or may not agree.  Much written here is prefaced with “I think”.

Wealth and income concentration:  The claim that money in the hands of the wealthy trickles down through the economy is just backward.  Money is like cream—it rises to the top.  In 2007, the ten percent with the highest incomes received nearly half of all personal incomes in the country.  This concentration was not just due to merit, much of it was  structural, institutional, and rent seeking.  In part because of Occupy, the public is gradually becoming aware of this fundamental problem.        Continue reading

The “Fiscal Cliff” Validates MMT

By Thornton “Tip” Parker

The fiscal cliff of increased taxes and reduced federal spending resulted from the hasty wedding of Congress and the Administration a few months back when the debt ceiling became a shotgun.  Now, all parties want something different.

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Life After Debt

By Doug Bowles (UMKC)

The CBO’s post-election report released a couple of days ago (apparently in support of advancing the prospects for a Grand Bargain, aka the Great Betrayal) is grounded in relatively pessimistic projections with regard to federal deficit and debt growth.  (See this powerful critique of CBO’s methodology by Follette and Sheiner)  In assessing just how much credibility these projections deserve to be accorded in our policy debate, it might also instructive to remember how wildly optimistic the CBO projections were not so very long ago with regard to complete elimination of the federal debt. Continue reading

The Economic Consequences of Mr. Obama

By  Fadhel Kaboub

When British economist and public intellectual John Maynard Keynes wrote his famous essay entitled “The Economic Consequences of Mr. Churchill” in 1925, the British economy was still suffering the consequences of WWI, and was slowly sliding into the worst economic depression in world history. Today, as the Great Recession continues to devastate millions of people’s lives in the United States, Americans will decide in a matter of days whether they want Mr. Obama to continue on as President for another four-year term, or elect Governor Romney to replace him in the White House. As an economist who is committed to social justice, I would like to offer a brief assessment of President Obama’s economic policies during his first term, and speculate on the likely direction that the U.S. will take under a second term Obama administration versus a possible Romney White House.

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Sectoral Balances within the Domestic Non-Government

By Paul Meli

There are many important laws that determine the behavior of various systems within the Universe but as far as economics is concerned, none is more important than the concept of a closed system.

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Myth Drives the Budget Fuss

By Thornton “Tip” Parker

Nearly everyone believes that Uncle Sam is like a family that must get money before it can spend.  But that is not true.  A basic function of any sovereign government is to create and run the country’s money system.  Unlike a family, the US government is sovereign.  It creates money and can never run out.  All the words about America’s financial limits mean nothing.

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Emergency Room Free for All: Why America’s Emergency Rooms Are Not the Key to Improved Health Care Access or Lowered Cost

By June Carbone

Mitt Romney has been going around telling newspaper editorial boards that the Affordable Care Act is redundant, that – to quote him in the Central Ohio Dispatch – “you go to the hospital, you get treated, you get care; and it’s paid for, either by charity, the government or by the hospital.”   (10/11/12 Ohio Dispatch)  Over the last few days, Paul Krugman and Nick Kristof have pointed out that limiting health care to emergency room visits already means that people die unnecessarily.   It’s just that when they are not the Harvard roommates of New York Times columnists no one except their families notices. Continue reading