Economics

Talking MMT: a new podcast from me and the MMT Podcast team

Published by Anonymous (not verified) on Mon, 15/10/2018 - 5:00pm in

A podcast recording I made in September with the MMT Podcast crew has just been issued. It's here to listen to:

In it I discuss with Patricia Pino and Christian Reilly what the UK government deficit actually is, Corbynomics, Labour's Fiscal Credibility rule and the difference between fiscal policy and monetary policy.

https://twitter.com/MMTpodcast

Why government borrowing is not like private borrowing

Published by Anonymous (not verified) on Mon, 15/10/2018 - 3:43am in

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Economics

A remarkably short thread from Stephanie Kelton:

The simple fact is that no one but a government can behave as it does.

Government debt is actually national savings.

In my opinion, it's not debt at all. Maybe it's time we renamed it.

WATCH: The Spider’s Web – Britain’s Second Empire

Published by Anonymous (not verified) on Mon, 15/10/2018 - 12:00am in

At the demise of empire, City of London financial interests created a web of offshore secrecy jurisdictions that captured wealth from across the globe and hid it behind obscure financial structures in a web of offshore islands. Today, up to half of global offshore wealth may be hidden in British offshore jurisdictions and Britain and its offshore jurisdictions are the largest global players in the world of international finance. How did this come about, and what impact does it have on the world today? This is what the Spider’s Web sets out to investigate

How to Destroy Neoliberalism: Kill ‘Homo Economicus’

Published by Anonymous (not verified) on Sun, 14/10/2018 - 5:51am in

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Economics

By Nick Hanauer This piece is adapted from a speech delivered September 30th at MIT, where Nick Hanauer won the 2018 Harvard and MIT Humanist of the Year award. Read more about the award, as […]

The post How to Destroy Neoliberalism: Kill ‘Homo Economicus’ appeared first on Evonomics.

Three Arrows Attacks the Right-Wing Myth of ‘Cultural Marxism’

Three Arrows is a German vlogger, who makes videos attacking and refuting the lies and assertions of the internet far right. These are reactionary, anti-feminist and anti-immigrant – some would also say racist – personalities like Stefan Molyneaux, Jordan Peterson, Carl Benjamin AKA ‘Sargon of Akkad’ and Paul Joseph Watson, who was formerly Alex Jones’ little Brit buddy on Infowars. In the video below, he tackles the myth of ‘cultural Marxism’. This is the belief amongst the transatlantic extreme right that a group of Marxist intellectuals are trying to destroy western culture from within through feminism, immigration, postmodernism, gay and trans rights and other radical movements. They trace this movement back to the German Frankfurt School of radical Marxist thinkers, which included Horkheimer, Jurgen Habermas and Theodor Adorno.

I’m putting up this video as it is directly relevant to the issue of some of the extremist literature that was found at the Tory conference this week. Mike over at Vox Political reported a piece by Vice that an extremist pamphlet, Moralitis: A Cultural Virus, had been found at a meeting of the Thatcherite, right-wing organization, the Bruges group, at the conference. This used the metaphor of a virus to describe the spread of left-wing ideas, particularly a positive attitude to immigration and Islam. These were attacking western culture, and were being promoted and orchestrated by ‘Cultural Marxists’.

Three Arrows shows how similar the modern Right’s ideas of Cultural Marxism to the Nazi idea of Cultural Bolshevism. The Nazis also believed that the Bolsheviks were spreading radical cultural and intellectual movements to bring down traditional western, and especially German culture, with the Jews at the centre of this Marxist conspiracy.

The modern right-wing myth of cultural Marxism started with two Americans, Pat Buchanan and William S. Lint. Buchanan wrote two books, The Death of the West: How Dying Populations and Immigrant Invasions Imperil Our Country and Civilisation and Churchill, Hitler and the Unnecessary War: How Britain Lost its Empire and the West Lost the World. Three Arrows states that Buchanan is a palaeoconservative who has complained that there are too many Jews on the American supreme court. In the first book, he argued that the cultural Marxists, referring to the Frankfurt School, were trying to de-Christianise and subvert the country. This meant making America more open to issues like homosexuality. The second book argued that Britain should never have declared war on Nazi Germany, and the Holocaust was the consequence of its doing so.

Lint is more overtly right-wing and racist. He calls for hanging as the punishment for crime, but only in ‘urban areas’. Which is a dog-whistle reference to Black ghettos. In 1989 he told a conference that political correctness and cultural Marxism had turned American universities in little ‘North Koreas’, in which dissenters would be persecuted and punished by ‘gender feminists’ and homosexual activists. In 2002 Lint spoke at a conference organized by the Barnes Review, a Holocaust revisionist rag, in front self-described Holocaust revisionists, anti-Semites and neo-Nazis. The character of the rag is shown by the cover of the issue Three Arrows puts up, which shows Adolf Hitler at a rally, with the caption, ‘In Defence of Adolf Hitler’. Lint is not, however, a Holocaust denier. He again talked about how the Frankfurt school were responsible for the ideas destroying America, and said that they were all Jewish. For which he was greeted with rapturous applause from the stormtroopers.

Three Arrows then goes on to discuss how, contrary to what Buchanan, Lint and their successors believe, the Frankfurt school were very definitely not supporters of postmodernism, and wished to preserve western culture. Indeed, Jurgen Habermas was one of postmodernism’s fiercest critics. He attacked the founders and major figures in postmodernism – Jacques Derrida, Foucault and Nietzsche contradicted themselves by using the methods of western rationalism to attack western rationalism. He also criticized Nietzsche for destroying the unity religion had given wester culture. The Frankfurt School were also appalled at the uniformity and coarseness of modern culture and expressed this in terms that resemble some of the comments of right-wing mouthpieces like Paul Joseph Watson. The difference, however, was that Theodor Adorno, who voiced these criticisms of the modern culture industry, placed the blame for western cultural decline on capitalism. Horkheimer, Adorno, Lowenthal and the other members of the School wished to preserve and promote western values like rationality and personal freedom. They believed that capitalism itself threatened Enlightenment values, and some of them attacked postmodernism, pop culture and ‘political correctness’. Three Arrows also makes the point that they wouldn’t have supported changing the culture to bring about Communism, because this contradicted the Marxist doctrine that this could only be done through changing society’s economic base.

Three Arrows also makes the point that there is absolutely no evidence for this ‘cultural Marxist’ conspiracy. Wikipedia had to move its entry for it to that of the Frankfurt School, because none of its readers could provide any. There are no Marxist countries in the West. And in Three Arrows’ homeland, Germany, in which Marx was born, the two biggest Marxist parties – the German Communist Party and the Marxist-Leninist Party together got less than 0.1 per cent of the vote combined. He suggests that instead of a secret Marxist conspiracy, these changes in western society owe more instead to politicians and businesses adopting ‘political correctness’ to appeal to a wider audience. As for left-wing students, they have always been around, and some of them do stupid things. Like the two young women in the late ’60s who took off their clothes and started kissing Adorno as a protest against ‘patriarchal structures’. For which Adorno called the cops and had them removed.

Three Arrows then argues that the similarity between the Nazis’ Cultural Bolshevism and the ‘Cultural Marxism’ of modern right-wing internet pundits like Stefan Molyneaux, Sargon of Akkad and Paul Joseph Watson isn’t coincidental. They both require their audience to accept the existence of this conspiracy on their word alone, without any supporting proof. The only difference is that Molyneaux, Sargon, Watson and the others aren’t anti-Semites. For them, the group responsible for this conspiracy aren’t the Jews, but the globalists. But their opinions do validate the Nazis’ own conspiratorial beliefs about Marxism, even while they decry the Nazis’ actions and murder of the Jews.

Three Arrows also makes the point that Molyneaux et al are massively wrong about the ‘Decline of the West’. According to them, Germany should have collapsed several times over by now. But Three Arrows declares with biting irony that he has no doubt that the Caliphate will be declared soon.

This is a good, short account of the idea of cultural Marxism, which makes it clear that it is just another extreme right-wing conspiracy theory, advanced and promoted by fringe ideologues with no real understanding of what the Frankfurt School actually was. Buchanan, Lint and the rest of them have mixed it up with the ideas of the Italian Marxist, Antonio Gramsci, who did believe that a change in culture could be use to alter social relations and society’s economic base.

As for Buchanan himself, he’s a Republican politician notorious for his extreme ideas. A pro-gun nut, he and his followers once went through a crowd
holding their guns in the air, crying ‘Lock and Load’ – basically, ‘take aim and fire’. Back in the 1990s he won an election in New Hampshire as part, I think, of the presidential primaries. The edition of the Radio 4’s Postcard from Gotham, a weekly show covering events in America over the previous week, began with a piece of Italian dialogue from the film Il Postino, which was then in cinemas. The show’s presenter, Joe Queenan, instead joked that it was Italian Fascist leader Benito Mussolini congratulating Buchanan on his success. He and his guests discussed the rise of the Right in America and Europe, and one of them, a Jewish woman, stated that despite his denials Buchanan was an anti-Semite. Going back to the subject of New Hampshire, Queenan joked yet again that now Buchanan had won the nomination for that state, all you could hear up there were cries of ‘Duce! Duce!’

Cultural Marxism doesn’t exist. It’s just a malicious conspiracy theory promoted by extreme right-wingers to attack the Left, and provide a spurious explanation for the social changes they fear and dislike – like gay rights, immigration, particularly Muslim communities and the decline of traditional morality. But while Cultural Marxism is a myth, those promoting it are a real threat to today’s culture of tolerance and pluralism.

RT: Corbyn Challenges Government Claim Austerity’s Over as ‘Great Big Con’

Tweezer at the Tory conference last week announced that austerity is over. However, as Mike reported over at Vox Political, this doesn’t mean that the government is going to reverse their policy of cutting benefits and services. From from it. Further cuts are on their way.

In this video from RT of Prime Minister’s Question Time, Jeremy Corbyn asks if Tweezer’s announcement isn’t ‘one great big con’.

He says

Eight years of painful austerity, poverty is up, homelessness and deaths on our streets is up, living standards down, public services slashed and a million elderly are not getting the care they need, wages have been eroded, and all the while, Mr. Speaker, all the while billions were found for tax giveaways for big corporations and the super rich. The Prime Minister, Mr. Speaker, the Prime Minister declared she is ending austerity but unless the budged halts the cuts, increases funding to public services, gives our public servants a decent pay rise then isn’t the claim that austerity’s over a great big Conservative con?

He’s absolutely right. And as Mike has also pointed out, we’ve heard these lies before. They were said a few years ago, when the Tories were also in trouble. It’s just another version of the tactic every Tory government makes when an election’s coming: they immediate claim they’re going to cut taxes, or do something else to make it seem that ordinary people will be less poor. Then, once they’ve been re-elected, all this is reversed and its back to taxing and cutting services for ordinary working people for the benefit of the rich.

As for austerity, when it comes to this government the word is a misnomer. Austerity is what our parents and grandparents went through in order to pay for the NHS. It meant rationing continued long after the end of the War, but it was ultimately worth it. The NHS has proved its worth millions of times over in the countless lives it has saved, as well as the ordinary process of saving limbs and organs and preventing and curing ordinary disease. And everybody has benefited from it.

This austerity, however, was brought about because the banks over the other side of the Atlantic crashed due to colossal mismanagement. Brown bailed them out in order to stop a global collapse of finance capitalism. All this was partly due not only to the banks themselves, but to the insistence of consequetive neoliberal governments from Reagan onwards, including Bill Clinton’s, that the banks should be regulated with a ‘light touch’. That meant repealing the legislation protecting the country and its investors from the antics that caused the crash. And Brown was fully behind the same policy over here, which resulted in the failure of the Bank of Scotland.

The austerity Cameron embarked upon is unnecessary, as Barry and Savile Kushner have shown in ther book, Who Needs the Cuts. If you invest in the economy so that it expands, tax receipts will increase as well. But the establishment in industry, politics and the media all heartily support cutting benefits and the welfare state. Those that dare to challenge this consensus, like poverty campaigners and trade unions, are ignored. If they appear on radio or TV, they will be shouted down.

And despite Cameron’s lie that ‘We’re all in it together’, it’s the poor that are most affected. People are being pushed further into poverty, spiralling debt and starvation. Nearly half a million people are now only able to keep body and soul together thanks to food banks. The Tories are going ahead with their privatisation of the NHS.

And while the poor are being forced further into misery and despair, Cameron, Tweezer and the rest are making the rich even richer through massive tax cuts.

Austerity is indeed a massive lie, and it’s high time the Tories – the party of liars – suffered for it at the polling station.

Does using models really make economics a science?​

Published by Anonymous (not verified) on Sat, 13/10/2018 - 2:25am in

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Economics

The model has more and more become the message in modern mainstream economics. Formal models are said to help achieve ‘clarity’ and ‘consistency.’ Dani Rodrik — just to take one prominent example — even​ says, in his Economics Rules, that “models make economics a science.” Economics is more than any other social science model-oriented. There are many […]

How far might the market fall?

Published by Anonymous (not verified) on Fri, 12/10/2018 - 7:05pm in

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Economics

Stock markets are trying a little recovery this morning.

But the question remains as to by how much they are over-valued, since few would really dispute that they are. The answer is, by a long way:

Paul Romer — a flamboyant and hot-headed economist

Published by Anonymous (not verified) on Fri, 12/10/2018 - 6:12pm in

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Economics

L’Américain Paul Romer, qui s’est vu décerner lundi le prestigieux prix Nobel d’économie aux côtés d’un de ses compatriotes William Nordhaus, est un économiste flamboyant à la carrière mouvementée, connu pour ses travaux mesurant la part de l’innovation dans la croissance. A 62 ans, il est actuellement professeur à l’Université de New York … Il […]

What the Fight For 15 Could Get Us

Published by Anonymous (not verified) on Fri, 12/10/2018 - 6:00pm in


Workers across the country are struggling to make ends meet. Could 15 dollars an hour solve the problem?

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