"The Lord of Light wants his enemies burned. The Drowned God wants them drowned. Why are all the gods such vicious cunts? Where's the God of Tits and Wine?"
- Tyrion Lannister
"The common people pray for rain, healthy children, and a summer that never ends. It is no matter to them if the high lords play their game of thrones, so long as they are left in peace. They never are."
- Jorah Mormont
"These bad people are what I'm good at. Out talking them. Out thinking them."
- Tyrion Lannister
"What happened? I think fundamentals were trumped by mechanics and, to a lesser extent, by demographics."
- Michael Barone
Saturday, April 19, 2014
It is remarkable that no country has outlawed economics as a dangerous occupation on a par with drug dealing or murder for hire. The damage done to the world over the last seven years based on policies designed by economists has been incredible.
Floyd Norris documents this fact in a nice piece comparing the change in employment rates (the percentage of the population employed) in rich countries since 2007. The only two countries with higher employment to population ratios today than at the start of the downturn are Germany and Japan. Both countries have broken with the economic orthodoxy in important ways.
In Germany, the government has adopted policies that encourage employers to keep workers on the payroll by cutting back hours rather than laying them off. As a result, their unemployment rate is almost three percentage points below its pre-recession level even though its growth has actually been somewhat slower than in the United States.
Japan has adopted a policy of aggressive deficit spending even though its debt to GDP ratio is already more than twice that of the United States. It also has deliberately targeted a higher rate of inflation as a way of lowering real interest rates and reducing debt burden. As a result, it has created a number of jobs that would be the equivalent of more than 4 million in the United States.
In short, ignoring the economic orthodoxy works. Listening to orthodox economists brings destruction to the economy and devastates peoples' lives.
Friday, April 18, 2014
Thursday, April 17, 2014
Tuesday, April 15, 2014
Monday, April 14, 2014
Sunday, April 13, 2014
Friday, April 11, 2014
Thursday, April 10, 2014
Kapital for the Twenty-First Century? by James K. Galbraith (Spring 2014 issue)
The New Marxism, Part Two by James Pethokoukis (3.31.14)
Capital in the 21 Century: Still Mired in the 19th (See correction) by Dean Baker (3.9.14 / 4.5.14)
Forces of Divergence: Is surging inequality endemic to capitalism? by John Cassidy (March 31, 2014)
reserve requirements (ABRR) by Thomas Palley
Wednesday, April 09, 2014
OVER AT THE WASHINGTON CENTER FOR EQUITABLE GROWTH: IN WHICH I AM PERTURBED BY KENNETH ROGOFF'S EVEN-HANDED HIPPIE- AND AUSTERIAN-PUNCHING: EARLY THURSDAY FOCUS ON WEDNESDAY by DeLong
With unemployment above and inflation below its formal targets, Why is the Federal Reserve talking about withdrawing stimulus? Why is it talking about moving to a regime in which it is no longer purchasing long-term securities as part of quantitative easing? And why is it forecasting that it will begin to increase interest rates six months after quantitative easing ends?
Tuesday, April 08, 2014
The foxy Fed by Noah Smith
Who’s to Blame for the Power Shift at the Fed? by Mark Thoma