Category Archives: Economy

On development

Where did the theory come from? According to Britannica,

theorists saw countries that had not yet achieved these as being at an earlier or lower stage of development relative to Europe and North America. The most influential proponent of this view was the American economic historian Walt W. Rostow. His 1960 book, “The Stages of Economic Growth: A Non-Communist Manifesto,” elaborated a linear-stages-of-growth model that defined development as a sequence of stages through which all societies must pass. This conception of the nature and process of development became the basic blueprint for modernization theory.

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Stephanie Kelton’s new book

Stephanie Kelton has a new book. Perhaps it would get more serious attention, if her name were Steve Kelton. How presumptuous for a woman to opine about money which, until recently, was “the last taboo.”
That said, Professor Kelton is wrong. The U.S. federal deficit is NOT a myth. It is, very simply, the difference between what Congress authorizes the federal agencies to spend in any year and what it adjusts the tax code for the U.S. Treasury to collect in the same year. If the code is set so the Treasury collects less, then Congress expects it to benefit hoarders by borrowing from the legislators’ friends.
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On Nixon and the gold standard

I missed this article when it was published in 2011 and the notion that an action can simply be reversed is obviously wrong. While I have long thought the significance of Nixon’s action was overlooked (even by Nixon himself), it was the response that caused the errors, including the initial imposition of price restraints.

Now, fifty years later, the country is ironically awash in currency which is not being spent because the hoarders do not have the capacity to spend in a timely fashion. The infrastructure of investment has been destroyed in the interest of speculation. Reality has been replaced by ideas and ideas are simply not productive. Wishful thinking does not put dinner on the table.
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Why do I call it thievery? Because the sales tax payers are not going to get what was promised last time or next. The financial fraternity is looking for dollars that can be used for speculation–like the loans that were extended to Trump.
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