THREE (3) THINGS TO WATCH BEFORE YOU PASS COMMENT ON MMT
The Basics of Modern Money
Angry Birds Approach to Understanding the Modern Economy
Articles from A Senex View
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The Value in Understanding MMT
…instead of saying they want to reduce government deficits and debt, supporters of “fiscal consolidation” and other such policies should say that they want to lower growth and lower private sector net saving, since that’s what the impact of their policies is likely to be. At the very least, supporters of austerity should indicate which of the other two balances will be reduced along with the government’s budget deficit, and how they will do this.
Frydenberg Sends Mixed Messages
Previously we examined the Treasurer’s opinion piece from the Fin Review with our progressive and modern monetary frame and now we examine the message contained within.
From that frame we learned the Treasurer at least admits we are not investing enough in childcare and perhaps schools.
CLIMATE ACTION NEEDED NOW SAY SCIENTISTS AND FIRE CHIEFS
Michelle Grattan from The Conversation puts it best.
REMIX: TREASURER FRYDENBERG CONFESSES AUSTRALIA LACKS GOVERNMENT INVESTMENT
Australian Treasurer Josh Frydenberg has an opinion piece in the Australian Financial Review today, the complete article can be read on the Treasurer’s website.
LABOR: GOOD VISION BUT WRONG DIRECTION
Originally posted at Australian Real Progressives
By now you have probably noticed Australian Real Progressives has a rather heavy focus on jobs. This is because 2 million Australians are looking for work or more hours.
Restoring True Full Employment in Australia
“So far as it can humanly contrive, never again will the dole queues be seen in this country. Never again will competent workmen stand idle for months and years while limitless work remains to be done. Never again will young men drift hopelessly from town to town and from State to State, searching for the jobs which, in all this wide land, did not exist for them.”
Ben Chifley, 1949.
Andrew Leigh on Modern Monetary Theory
Andrew Leigh is an incredibly nice guy and I used to follow his blog before he entered parliament. He had many very useful statistics on that blog which I believe you can find at PreviousLeigh (see a sense of humour too).
Unfortunately as a practising economist he has zero understanding of Modern Monetary Theory (MMT).
Does Money Really Grow on Rich People?
In my previous post I outlined why jobs don’t come from rich people: capitalism runs on spending (sales), not savings. Job opportunities appear naturally when businesses forecast sales growth and expand output accordingly (and similarly disappear under reverse conditions). When viewing the economy as a whole, we can observe that private sector investment responds to rising incomes and spending as entrepreneurs expand output to match market demand and banks have confidence lending.