Happy New Year and thank you for subscribing to The Lens. It’s truly an honor to share this forum with you. I look forward to delivering a lot more content in the new year as this becomes the primary outlet for my research and writing. I also hope you’ll consider using Substack’s new
The man caused climate change crisis is the worst & most planet threatening crisis we ever faced. We must stop burning fossil fuels! And I speak to the need from coal addicted West Virginian.
Paul Ehrlich wrote The Population Bomb in 1968. I continue to be amazed that the majority of economic policy discussions here in the West are so narrowly defined by the short-sighted trade-offs between inflation and unemployment levels within a still striving population of achievers. Wouldn't it be more constructive, long-term, if economists like yourself instead focused on achieving full employment WHILE lessening the levels of economic inequality, nationally and globally? Obviously, the second objective is the hard part. The world's population has more than doubled since 1968, and like Ehrlich knew over 50 years ago, a rising global population that aspires to live like middle class Americans, let along the top 1%, is inherently unsustainable AND inflationary, without broad redistribution, miraculous increases in productivity, and possibly, "excess consumption" taxes of some sort.
There may not be evidence yet of a wage price spiral, but rest assured, wage pressures are building. Railway workers just negotiated a 24% increase. Pilots at a major airline bagged a 34% increase. Mandatory $15 minimum wage laws are expanding in many states. Business owners continue to report labor shortages.
Inflation pressures have modestly retreated but CPI-U at 7% is still the highest in a half century. With food & energy leading the way, low income families are hit the hardest too.
The Fed arguably could slow rate hikes but the decline in M2 growth & supply is more welcome. If the Fed wants to seriously move to crush inflation, start shrinking the balance sheet which would extract cash from the system and push long rates up.
Government and the Fed have 'tweaked' fiscal & monetary policy tremendously since 9/11. Our reward for it has been two decades of GDP growth below 2%. We've lurched from one debt & low-interest crisis to another since 9/11. Doing more of the same will not help America dig out of its fiscal & monetary hole. We cannot print money endlessly as a way to solve our problems. Guaranteed government jobs is a relic of an idea that the Soviets already proved is a failure. It's time to tweak less, set a sensible interest rate & fiscal policy in place, and remove fantasy ideologies from the national economic debate.
HERE ARE SOME THOUGHTS. 1. WHAT THE HELL IS FULL EMPLOYMENT IN AN AUTOMATED MODERN ECONOMY? MAYBE FULL PROCUCTION IS MORE APT. 2. DONUTZ, WE SHOULD BE MORE FOCUSED ON DONUTZ IN ECONOMICS, GOOD COFFE CAN HELP. 3.INFLATION IS A MYTH. PRICES RISE AND FALL BASED ON GREED IN THE MARKET. THIS IS NOT INFLATION. INFLATION DOESNT EXIST UNTIL IT REACHES ASTRONOMIC RATES LIKE 500%, NOT A MEASILY 10%. AT 10% RUFFLY IT IS A MICRO OR FISCAL CONCERN AND NOT A MACRO OR MONITARY CONCERN. EITHER WAY IT IS NOT A VALID GAURD RAIL FOR MMT. THE ISSUE IS ALWAYS ECONOMIC CORRUPTION. IF WE DO THE RIGHT THINGS, WE HAVE UNLIMITED MONEY, IF WE CHOOSE THE WRONG THINGS THERE WILL NEVER BE ENUFF MONEY. CREDIT IS A GR8 MEASURE OF ECONOMIC CORRUPTION. 4. WE HAVE A MAGIC MONEY TREE, LETS START EMBRACING IT. ENJOY, THE COFFEE IS BREWING.
The man caused climate change crisis is the worst & most planet threatening crisis we ever faced. We must stop burning fossil fuels! And I speak to the need from coal addicted West Virginian.
What's the name of the new book? Excellent idea to open up the book for input.
Wishing you and the family a most fulfilling NY!
Look forward to your new book.
In Canada the central bank is saying “wait and see” regarding any further interest rate increases but it is pretty clear they have gone too far.
The human cost of a recession that was and is unnecessary makes me both sad and angry.
How long is it going to take for us to realize the Climate Emergency is the only issue on the agenda?
I wish all a happy and safe new year, remembering that 2022 is likely the coldest year we will experience over the coming decade.
Paul Ehrlich wrote The Population Bomb in 1968. I continue to be amazed that the majority of economic policy discussions here in the West are so narrowly defined by the short-sighted trade-offs between inflation and unemployment levels within a still striving population of achievers. Wouldn't it be more constructive, long-term, if economists like yourself instead focused on achieving full employment WHILE lessening the levels of economic inequality, nationally and globally? Obviously, the second objective is the hard part. The world's population has more than doubled since 1968, and like Ehrlich knew over 50 years ago, a rising global population that aspires to live like middle class Americans, let along the top 1%, is inherently unsustainable AND inflationary, without broad redistribution, miraculous increases in productivity, and possibly, "excess consumption" taxes of some sort.
There may not be evidence yet of a wage price spiral, but rest assured, wage pressures are building. Railway workers just negotiated a 24% increase. Pilots at a major airline bagged a 34% increase. Mandatory $15 minimum wage laws are expanding in many states. Business owners continue to report labor shortages.
Inflation pressures have modestly retreated but CPI-U at 7% is still the highest in a half century. With food & energy leading the way, low income families are hit the hardest too.
The Fed arguably could slow rate hikes but the decline in M2 growth & supply is more welcome. If the Fed wants to seriously move to crush inflation, start shrinking the balance sheet which would extract cash from the system and push long rates up.
Government and the Fed have 'tweaked' fiscal & monetary policy tremendously since 9/11. Our reward for it has been two decades of GDP growth below 2%. We've lurched from one debt & low-interest crisis to another since 9/11. Doing more of the same will not help America dig out of its fiscal & monetary hole. We cannot print money endlessly as a way to solve our problems. Guaranteed government jobs is a relic of an idea that the Soviets already proved is a failure. It's time to tweak less, set a sensible interest rate & fiscal policy in place, and remove fantasy ideologies from the national economic debate.
OK chaos are gr8 but I'm an andriodian.
HERE ARE SOME THOUGHTS. 1. WHAT THE HELL IS FULL EMPLOYMENT IN AN AUTOMATED MODERN ECONOMY? MAYBE FULL PROCUCTION IS MORE APT. 2. DONUTZ, WE SHOULD BE MORE FOCUSED ON DONUTZ IN ECONOMICS, GOOD COFFE CAN HELP. 3.INFLATION IS A MYTH. PRICES RISE AND FALL BASED ON GREED IN THE MARKET. THIS IS NOT INFLATION. INFLATION DOESNT EXIST UNTIL IT REACHES ASTRONOMIC RATES LIKE 500%, NOT A MEASILY 10%. AT 10% RUFFLY IT IS A MICRO OR FISCAL CONCERN AND NOT A MACRO OR MONITARY CONCERN. EITHER WAY IT IS NOT A VALID GAURD RAIL FOR MMT. THE ISSUE IS ALWAYS ECONOMIC CORRUPTION. IF WE DO THE RIGHT THINGS, WE HAVE UNLIMITED MONEY, IF WE CHOOSE THE WRONG THINGS THERE WILL NEVER BE ENUFF MONEY. CREDIT IS A GR8 MEASURE OF ECONOMIC CORRUPTION. 4. WE HAVE A MAGIC MONEY TREE, LETS START EMBRACING IT. ENJOY, THE COFFEE IS BREWING.
Does anyone know of a good study guide for The Deficit Myth? My study group is reading it, and we could use a guide. Thanks!