How to Understand Capitalism and Socialism
A burning topic, figuratively and literally.
Category: divorce of production from consumption
The Paradox of Unthrift Waiting for another – doubtless very different – Keynes
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“
Consumers of the World, Unite! A Dissection of Contemporary Mass-Man
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“
Border-Adjustment Sleight of Hand? Sense and Nonsense on the Border Adjustment Tax
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 Border Adjustment Tax The Way Forward, or Regrettable Sidetrack?
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?“
On the Road to Elysium When fiction approaches fact
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“
Prospects for the European Economy
We can conduct a similar analysis of the European economy as we did for the US economy. We will restrict our discussion to the Euro Area, the countries which share a common currency, the euro. The euro creates a unique, separate trading bloc, the internal dynamics of which need to be understood both to assess the … Continue reading “Prospects for the European Economy”
Prospects for the US Economy
THE WORLD ECONOMY IN RÉSUMÉ In the previous post we outlined the structural condition of the world economy, and in particular the structural flaws it contains. The main flaw is the divorce between production and consumption. Prior to the establishment of this new macroeconomic structure, supply and demand were roughly in balance in the domestic … Continue reading “Prospects for the US Economy”
What This Election is Really All About
The Economics of the 2016 Election Cycle The current election cycle in the United States is like none other in recent memory. At least in terms of vitriol, it is no contest. But beyond the partisan slams back and forth lies a deeper fundamental reality which really lies at the heart of the contest. In … Continue reading “What This Election is Really All About”