Articles/News

China – Avoid the West’s Debt Overhead: A Land Tax is needed to hold down Housing Prices by Michael Hudson UMKC 07/22/13 2013

How can China avoid the “Western financial disease” – a real estate bubble followed by defaults and foreclosures? The U.S. and European economies originally sought to avoid this fate by taxing the location’s site value. A rent tax was the focus of Progressive Era reforms.

"The Insider’s Economic Dictionary – Part A" By Michael Hudson UMKC July 18, 2013l

The Antidote to Euphemism

The fallacies that lurk in words are the quicksands of theory; and as the conduct of nations is built on theory, the correction of word-fallacies is the never-ending labor of Science. … the party in this country, one of whose great aims was, at one time, the perpetuation of slavery, owed much of its popular vote to the name Democracy.
– S. Dana Horton, Silver and Gold (1895)

"A Plan for All the Detroits Out There" By Marshall Auerback, Stephanie Kelton and L. Randall Wray UMKC, N.E.P.

Should the federal government bailout Detroit? That’s the question everyone is debating. We think the discussion should be expanded well beyond this narrow question. Detroit is the canary in the coal mine, but it’s symptomatic of a bigger problem, which is the lack of jobs and decent demand in the economy.

Discrediting Regulation: from George Stigler to Tyson’s Fraud-Free Carbon Tax Fantasy by Willaim Black UMKC, NEP blog

Laura D’Andrea Tyson (President Clinton’s principal economist) has written an ode to a “carbon tax” that does not acknowledge a single disadvantage or substantive (as opposed to political) concern with such a tax. A carbon tax can have advantages, but her article oversells the idea and ignores the severe concerns about such a tax. Her article demonstrates why the Clinton administration’s anti-regulatory and fiscal policies helped sow the seeds of ongoing financial disaster. (The Bush administration watered and fertilized those seeds and we all reaped the whirlwind.)

Revealed Biases: Why MMT Critics Continue to Rely on Strawman Arguments William Black, UMKC, NEP blog

Economists of nearly every flavor believe in the concept of “revealed preferences.” What matters is not what people say they will do in a hypothetical situation, but what they actually do. Their actions speak more credibly than their words. In this column I announce a related concept: “revealed biases.”

Elizabeth Warren Tackles Wall Street by William Greider, The Nation

Senator Elizabeth Warren has introduced what I would call a seismic proposition, one very likely to disturb the sleep of complacent politicians. Why, she asks, should the Federal Reserve lend money to banks at an interest rate of less than 1 percent when the government intends to charge students 6.8 percent interest on their college loans? The senator posted an amusing billboard on her official website: Want to borrow money from the government? Don’t be a student. Be a bank.

Matheus Grasselli: How Advanced Mathematics Can Support New Economic Thinking

http://www.youtube.com/watch?v=GU-ZwsyPvXk

This is useful interview revolving around constructive versus ideological uses of mathematics within economics.

The Rise of Rafael Correa and Ecuador, an interview with William Black, UMKC

This is a great ramble by William Black, he seems to be speaking on an extemporaneous basis. He also generally omits any reference to MMT as a ongoing alternative to the Ricardian colonial/mercantilist perspective. He is well practiced at speaking and his fairly lucid writing.

http://fromalpha2omega.podomatic.com/entry/2013-06-22T02_33_39-07_00

Labour's forgotten jobs guarantee By Philip Pilkington, The Guardian Friday 7 June 2013

This week we have seen two interventions from Labour that mirror the current government's taste for austerity: Ed Miliband's commitment to copying the coalition's benefits cap; and shadow chancellor Ed Balls's call for "iron discipline" with regard to the fiscal deficit. This seems like a far cry from January, when Balls advocated a jobs guarantee programme to help the long-term unemployed get back to work. Yet with interest rates on government debt still at record lows, a jobs guarantee programme is exactly what Britain needs. And it's hardly an idea without foundation either.

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