How to Understand Capitalism and Socialism
A burning topic, figuratively and literally.
and Investing
A burning topic, figuratively and literally.
The cornerstone of John Maynard Keynes’ General Theory of Employment, Interest and Money is the rejection of one of the pillars of classical economics, and indeed of virtue itself classically understood. That pillar is saving. In that classical world, saving is a fundamentally important action, crucial to economic survival and growth. From it flows the … Continue reading “The Paradox of Unthrift Waiting for another – doubtless very different – Keynes“
There is something different, something new and unprecedented, about the generations of the 20th and 21st centuries as compared with all those that went before them. This was already noted in 1930 by the great Spanish journalist and philosopher José Ortega y Gasset, when he unveiled[1] the phenomenon of el hombre-masa, the mass-man, otherwise known … Continue reading “Consumers of the World, Unite! A Dissection of Contemporary Mass-Man“
The current fracas with regard to immigration through the southern border of the United States will die down in time, and another issue will replace it in the headlines, in breaking news announcements, in round-table discussions. There will not be a resolution any time soon. But what is important is to understand the underlying issues … Continue reading “Immigration, Migration, and Imbalances”
The trickle of articles discussing the proposed Border Adjustment Tax (BAT) has turned into a veritable flood. Not surprisingly, the lion’s share of these articles oppose the idea of border adjustment. It would be tedious to run through them all; suffice it to say that the primary argument is that such a tax would raise … Continue reading “Border-Adjustment Sleight of Hand? Sense and Nonsense on the Border Adjustment Tax“
The wait continues regarding the tax reform proposal to come out of the White House and be taken up by Congress. Despite the headlines dominated by more peripheral matters, tax reform is shaping up to be one of the cruxes to the success of the new administration. It is not simply a matter of reducing … Continue reading “A Monetary Solution to Trade Imbalances? Gilder and the Gold Standard“
The persistent trade deficit being run by the US, which is the major manifestation of the lopsided global trading system, has to be dealt with to ward off economic disaster. The reason for this is outlined specifically in this previous post, and generally in these posts. It is a sad but revealing commentary that it has … Continue reading “The Border Adjustment Tax The Way Forward, or Regrettable Sidetrack?“
Since the November election results, markets have been gaining – so much so that the big Wall Street trading firms booked eye-popping earnings in the fourth quarter. “Citigroup’s $3.7 billion trading haul was its best fourth-quarter showing since the financial crisis. J.P. Morgan Chase & Co., which reported its results last week, had its best fourth-quarter for trading ever,” reports … Continue reading “Trumponomics and the Strong Dollar”
Donald Trump’s election victory on November 8th is now a fact. Reactions to it have not been lacking, of course. On the economic front, they have ranged from the cautiously optimistic to predictions of utter doom. For their part, the financial markets went from downturn to upturn in short order (as chronicled here by Jerry … Continue reading “Trumponomics and the Great Rebalancing”
The 2013 movie Elysium depicts a dystopian future of unremitting, jarring poverty juxtaposed with serene, detached wealth. Literally detached: wealth resides in a lavishly equipped, lebensraum-furnished space station, high above an impoverished, exhausted Earth. The planet is only useful as a source of provision and maintenance for the space station; its fruits have been extracted … Continue reading “On the Road to Elysium When fiction approaches fact“
I am struck with disbelief with the apparently unlimited extent of their smug arrogance. It is these very men (and yes, they are mostly men!) who are singularly responsible for the mess we are in. Blair and Clinton in particular presided over the massive accumulation of debt, reckless deregulation and disproportionate and unbalanced boom in … Continue reading “Carrying the Water The Role of the Left in the Neoliberal Order“